The best way to do this is to renovate a unit or two to the specifications to bring it up to market.  

Level of current renovation - quite a few properties in Peniche are left to be renovated providing the opportunity that there will be decent area specific capital appreciation. 

Repair costs in first 1 month of owning (this is renovated house done by seller, not me.

I am looking into my first property and have been pre-approved for a renovation loan from a conventional lender.

They have all be renovated and would not look that way. 

@Daniel GrantzRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

By the way, my company can likely finance your deal with 10% down on the purchase (90% LTV) and 100% financing of the renovations.

Worth knowing, that it is less about adding “handcuffs” and more about offering a different option for owners who aren’t ready to sell but need capital - money for renovations, maintenance, or any other need.

I didn't make any renovations as the property was already in good condition.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.