Peter, I think what Jose is implying in Baltimore it's hard to determine what the vacancy rate and tenant turnover will be to understand the numbers completely.

The OP has equity spread over properties, which implies some current mortgages.

As Ryan implies or directly stated each technique has pluses and minuses everything.

Is there an implied contract with myself and the tenants since I accepted payment from them?

This implies 1) There will need to be market appreciation to be able to extract value via a refi or selling 2) It is cheaper to buy a property with an existing ADU than to add an ADU.   

Which implies that it's not voluntary (ie a choice) on the part of the owner.  

Are you implying that you are damned if you do and damned if you don't, or is there a way to transfer it to an LLC and properly insure it without causing the due on sale clause to kick in?

All I'm doing at this point is seeing if the AP and the rehab is where it needs to be...as in matching the Profile generated by the Micro-market.I figure out what my offer is, make it, and go onto the next property.In the time it took me to write this, I could have analyzed at least 10 properties.Now, saying this, I'm not implying that 'm doing a quick and dirty job.  

I read that implies that you are signing for the LLC.

Let your FTHB cousin continue using it, but as a REI I'd suggest disregarding it when evaluating a particular house or transaction or upgrade (it's fine to know the aggregate/average number for a given market, it's just not accurate for a specific house the way Zillow/redfin/ManyAgents/etc imply).Appraisers generally will not count below-grade as part of their calculation of gross living area, in any case.