One important item to note about bids: most smaller contractors are terrible at estimating.

Accounting for 10% management, 5% vacancy (2 year lease locked in on tenant that has been there 2 years already..) 10% cap ex, and 5% maintenance.

You can get started with rent to own/lease option or another creative strategy like buying subject to. 

This needs to work in conjunction with a strong lease and thorough tenant on-boarding. 

I had a tenant that wanted to renew a lease, but only for 6 months - which would have left us in the middle of January (in Michigan :) Apparently they may inherit a somewhat run down house, and wanted to keep their options open.

One way we fight this is with photo verification pre-lease signing and not approving renters who don't view the place in person, our credit underwriting software also flags apps that have a high likelihood of fraud.

Most new construction deals require you to give up to a 10-year warranty on some items while most fix and flips come with very little extended liability after the sale excluding gross negligence which is not stopped by an LLC in any case.

It's difficult to see how a tenant will be after screened and signing a lease.

If not, I'm guessing it would be treated as a traditional rental loan, either conventional or DSCR, using market rents rather than the rent in the lease agreement.

At the end i will add a list of items why adding a single ADU in single family zoned areas may not be the best RE option.The most common value add is via a rehab.