Similar areas that have legal under utilized permitted space convert to max studios that you can fit.  

Ambulance chasing attorneys know their way around and can legally navigate around Insurance Policies.

Since our legal billed were $36,000, we’re $100,000 ahead.  

If you buy it too low, in some jurisdictions they will call it "equity skimming" which is illegal.It can be very profitable, I've done many, but you really need to know what you are doing. on pre foreclosures on the West coast if you happen to do them legally .. the old owner is due 80% of the profit if you sell within 36 months.. so there is that.. but if your buying pre foreclosure for long term hold and wait out the 36 months then your fine. the reality these days is post GFC lenders/ banks/ servicers have realize that working with the buyer to reinstate recast redo the loans is far better than taking it all the way to foreclosure so your correct its usually the worse houses that make it all the way to the end and go to sale.thats why if you follow NODs  Notice of defaults or whatever they are call in your state. you see so many postponements and or removed or paid off etc.. so you hone in on one property do all this work only to have it not go  to sale  rarely are you going to buy a home that you really want LOL

Last I checked they don't allow ADUs legally that aren't fixed, they want to see foundation for it to be rented out and considered an ADU. 

Even so, they were able to help at times when I had technical questions about the legal process.

Quote from @Shaun Ng: Hi, I recently have a legal name change, and I own 2 rental properties in Fairfax county, VA.

Legal entities are set up for this purpose.  

Our local REIA is hosting our next meetup on January 9th and we are bringing in legal experts to help investors better understand the implications of Good Cause Eviction.Here's the link to register for your seat:https://www.ffreia.com/Events.aspx?

Whether it's a legal demand for compliance or simply an email, it doesn't really matter; just make sure everything is in writing.