Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Just make sure you have all the required permits, including alcohol.

A Lot of turnkeys are going to these undesirable spots and its highly possible you'll end up with more liability with turnover rehab requirements.

Although, some of the information was not required either time and some was required both times.

However, one nice thing about this community is a one-time cost and it doesn't require additional payments.

I would simply hire a good civil that has done development in that jurisdiction and pay for a feasibility study and let them run through all the check items.. but thats really just the start.. also for context .. these projects require 350 to 750k in CASH up front to get to approved plat status ..

That would probably require a professional. 

As I see it, the only ways that real estate pays you well in the first 3-5 years is low to no leverage or a strategy that requires more work (short term rental, mid term rental, rent by the room, etc.).  

This requires a dedicated effort sourcing and analyzing hundreds of deals to find the one or two worth pursuing.  

Most hard money lenders require 10-20% down payment of the purchase price or total project cost.Holding Costs During Rehab: Yes, you'll need to cover carrying costs, including hard money interest, utilities, taxes, and insurance.