What I'm planning: buy and hold the property, brush and clean it up with intent to hold until cost of funds drops a little in 4-6 months.

I then hired contractors for plumbing, electrical, roofing, and HVAC upgrades.

If you have the electrical capacity and the drain I would spend the $1600-$1,800 to buy the MUCH nicer ventless GE or LG all in one units.

Also, our properties are commercial so it's not like I'd need to go to a duplex and sweep and clean the place.IMHO my CPA is not conservative at all. 

And as investors we should know this, but always anticipate higher costs and longer waits.EXAMPLE Breakdown of Costs:Plan Purchase: $1,500Permitting Fees: $2,500-7,500Site Preparation (grading, utilities, foundation): $20,000–$30,000ADUs require separate utility connections for water, electricity, and sewer but you can tap into existing utilities at the primary houseIn Raleigh you CANNOT split lots fee simple, so setting up completely separate utilities would not allow you to section off the ADU as of nowYour ADU must be on a permanent foundation (no wheels, no ability to move the structure)Construction (labor and materials): $100,000–$150,000Low-grade: $150–$180/sq ft averageMid-grade: $180–$220/sq ft averageHigh-end: $220–$250/sq ft averageLandscaping/Finishing Touches: $5,000Total Estimated Cost: $125,000–$200,000You could easily spend $200k+ with super end high finishes, custom designs, complicated sitework, adding a second story or more sqft, etc.

I then hired contractors for plumbing, electrical, roofing, and HVAC upgrades.

Once the interior was stripped and the infrastructure tested, I brought in commercial contractors to handle critical systems like plumbing, electrical, roofing, and HVAC installation.The house, built in the early 1900s, was originally a coal-burning residence.

Purchase price: $630,000 Cash invested: $120,000 Gutted this property, brand new electrical, furnace, propane, finished basement to create separate unit.New garage with rental unit.

On 1/2 price days I spend $250 and get nice clean clothes only with retail value of around $2,000.  

This is where smoke/CO detectors, grounding, electric garage door reversers, and other goodies came from.If the municipality performing the U&O calls out an item, Seller is stuck with resolving it either by fixing it or negotiating it with the buyer.