The P&L of lien investing is reasonably constrained; it's more of a debt-like instrument than an equity-like instrument.  

Usually 10% of my tenants leave the place better than they moved in, 10% of my tenants leave the place worse than they moved in and we had to exhaust their security and pay the cost in terms of 6 to 12 months rent to bring a property to listing condition (depend on how long the LTR tenants have lived there of course).

For example, my city requires 12-2 electrical or higher everywhere; it doesn't matter if you are running one single circuit to serve a 1/2 amp stove exhaust fan, you cannot use 15A breakers and 14ga wire anywhere.

I'm not telling you NOT to improve/upgrade the property, but I'd exhaust all free/cheap options to market it as-is first.

Commercial rates are lower for a user than an investor.

I am having bathroom exhaust fans wired to come on whenever the bathroom light is on.

For now, my toddler and day job are exhausting enough!

The other reason is that tax assessors may use different methodologies to value the property including revenue potential.The key items that play a role in the valuation of commercial real estate property include:Property Type: A storefront is for example taxed differently than an office building.Location: Rural regions tend to be taxed at a lower rate than urban regions.Government Spending: When there are different funding needs, it can determine how much of that revenue comes from taxes.Market Shift: When the market shifts, property values change which can lead to a change in the assessed value.Let’s talk a bit more in depth about how the commercial property values are determined.

For cost reasons I called it a remodel rather than an ADU.

I did some research trying to find a good detailed lease template to have my tenants sign but none seem to be specific and exhaustive in terms of covering any and everything that comes with the type of tenants that one finds in these type of neighborhoods.