Like I said, we only have utilities available in the front of the property and no current permanent structures on the property.  

If managing the STR is no longer sustainable @Robbie Shiver, here are a few alternative options to explore:Mid-Term Rentals: Consider marketing to travel nurses or corporate relocations for stays of 1-6 months.

I have been telling my sons to utilize that!

I’m aware I should’ve backed out when the inspection was done but thinking I could bare the cost - it’s not sustainable for the goals I have with this property.

We want to travel and invest and are considering converting this short term rental to a long term rental to avoid sales tax, paying utilities and general management of the property. 

Are you utilizing REPS?

It now cash flows beautifully, which I continue to utilize for other my other properties. 

They need to do all their due diligence including understanding the value that will be added by the ADU, the finance options available, the consequences of adding the ADU (rent control, property taxes, rental limitations, etc), etc.Good luck As with all things, it depends on the investor and the equity.If they are able to leverage existing equity to buy it under a HEL or HELOC, then they are adding equity with no out of pocket expenses, and adding immediate and longterm cashflow to existing stock.We like ADU's because there isn't more land being created in our city that is landlocked...but there is more density available to those with large lot under-utilized sfh.In my market, it typically costs $2 to add less than $1 of value on single build ADUs.  

Utilize a 1031 Exchange: Under IRS Code Section 1031, you can defer capital gains taxes by reinvesting the proceeds from the sale into a similar “like-kind” property.

So yes its possible to buy a note and make a huge return but like owing a home in Detroit that you paid 1k for and sold to some unsuspecting Cash flow investor for 30k and made a whopping % profit its not sustainable @J Scott like J Scott mentioned.And the idea in my mind that you can take newbies that go to course's and teach them how to buy non performing assets and then go through the foreclosure process for the reinstatement process while it can be done I bet a fair amount of them ( just like cash flow investors buying Ghetto) the assets are the same and all the same troubles come along with them.At least that's my view.