Does this sound realistic?

this sounds  a  bit  bizarre 

Hml should not require that in advance. instead, if building new, reconfiguring, etc, something a municipality might not go far, they are perhaps looking for now security before purchasing. which of these sounds like what you've encountered? 

Cheap House = Expensive HeadachesWhy buy 5 units in what sounds like a D class area when you can make the same cashflow with 1.5 units in a safer area with quality tenants.

Coming up with half the cost or maybe if you have two partners 1/3 of the cost is a lot easier than all of it.This all sounds great, right?

It sounds like you have already defined your investment strategy using the BRRRR method.

Sounds like a case where you can have your cake and eat it too.

I currently am completing a garage conversion and another Junior ADU that will add 1278 sqft between the two units.  

@Erica CalellaPost the review so we can see and help out.It sounds like it was truly a negative experience.

So you're not completely anonymous.