Three units to maintain.Although I need to do the math, scenario 1 strikes me as more economical as there are shared costs gained with a multifamily property.

I don't think it's worth trying to sue the county over 6k, it may cost more in legal fees.This was my first flip and it has been a school of hard knocks. 

@Kathleen Park if you want the tenants to cover, just increase the monthly rent a bit at renewal to cover the cost.

We were also looking at a TON of houses in the area so we knew this house was under what it should have costed.

Since this is an FHA Streamline, there is no appraisal, no income verification, no employment verification, no out-of-pocket costs, and nothing rolled into the new loan.

I would like to possibly purchase a multiplex 2-4 units that is a proven winner when comparing costs to return. would this be ideal?

If you wait at least 90 says from the purchase date - the options tend to open up for better rates and lower cost.

At times, I wish I hadn't even touched certain things as it cost me more to hire out a contractor to fix my mistakes, and other times I have saved myself a few hundred dollars on maintenance costs.

Victor,I would avoid that high cost ADU and use that money to invest outside of California.

And yes, he should be giving you his crew, the subs and materials at his cost.