Another option is to rent it out, take out a cash-out DSCR loan, and invest the cash in another investment.

This gives you a foundation for making a fair offer.Secure Financing: Be prepared to show you’re a serious buyer with funding lined up, whether through cash, traditional financing, or a creative option like seller financing.Have a Strategy for Repairs or Development: If the property is distressed, outline how you’ll handle improvements to bring it back to productive use.

For best results shop the vendors (who can be covered by insurance/meet HOA requirements) and get several options to your HOA management company to have the board pick from.

Start there and see what your options are.....don't panic yet!

With fluctuating interest rates, tighter lending criteria, and increased competition for properties, securing the right financing has become a key factor in closing deals and maximizing ROI.Are you exploring creative options like BRRRR, partnerships, or seller financing?

There are towns that are not too far where there could be some options for you, but I would start going to real estate investor meetups and pair that with books and podcasts.

I like the tub (it wasn't cheap, about 12 grand) but there's not great service options where I live and not sure if I would get it again since I mostly have to take care of it. 

Sounds like there are more than just 2 options. 

However, if managing tenants isn’t something your parents want to deal with, selling after renovations could also provide a large profit.Feel free to reach out if you'd like help with running numbers or considering financing options if you go the ADU route → I’d be happy to help!

Not sure why people go for 40-year fully am instead of just traditional 30-year with 10-year IO option, I tend to think the 40 year term is more of a gimmick