I don't think you are going to be able to get insurance for two separate living units in a single-family when they are both illegal and likely do not have the correct egress windows (basement) for fire safety which could subject you to huge liability if something happens to either party.

In the meantime feel free to check out a post I did a while back about Cost Segregation - The Basics (biggerpockets.com)

That style of learning and introduction to true industry catches my attention as having someone in the space that understands the space to bounce things off of and learn from seems to be the ideal way.I have through a handful of the webinars and follow up calls with different companies and they all basically pitch similar ideas and strategies.

@Preet Oberoi - that really is basically impossible. 

The problem is that your debt payments are going to basically wipe out that $400K profit unless there is room to increase revenue or reduce expenses.

It was basically a gut job.

Our standard email with the bid states, please contact us to discuss & redline to your budget.The only thing we will require are health & safety repairs, to avoid a lawsuit.

It will familiarize you with the basic terminology and benefits.

It will familiarize you with the basic terminology and benefits.

Quote from @Erick Pena: A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − DebtThere's much more to it, but that's the basic idea.