.🔹 Insurance Challenges – Even when insurance pays, it rarely covers the actual cost to completely rebuild.

It gives you complete control over the property and helps you build the foundation for future growth.If you're planning to expand your portfolio, I strongly recommend partnering with a professional management company.

You could force the seller to bring it up to code before the sale is complete as one of the contingencies of buying it, let them deal with it.

First, they allow you to make lower payments during lean times, such as during remodeling, vacancies, or when you need to qualify for a loan before completing a renovation.

When buying sight unseen, it's essential to get the complete picture.

What would the rents be for the duplex after the rehab is complete (assuming both tenants are paying rent)?

It can take a year or more to complete an ADU.

@Lauren Merendino All of your comments make complete sense.

However I would say those lenders would be more willing than a bank to write the mortgage, and after completion you can refinance it.Overall, its probably easier and better use of your time to just find another house that doesn't require the construction and where the numbers make sense.

I completely agree with @Ashish Acharya's points about the cost-effectiveness of a HELOC and the potential credit implications if it’s secured by your primary residence.