The basement unit is at "best" an "accessory dwelling unit," but even if the appraiser had called it that, the loan application would have been denied because none of the agencies (Fannie, FHA, Freddie, etc) will lend on 2-4 unit real estate that also has an ADU - they only acknowledge the existence of SFRs with ADUs.

Also, I don’t know if it matters but he had a very beautiful black dog and after he moved out, the place was very filthy.

The corner looks beautiful. 

I am trying to keep costs low, so we are just keeping it the natural oak color and hopefully it turns out beautiful!

I am planning on converting part of my new primary home into an accessory apartment and renting it out.

I believe they did recently pass legislature in NH for accessory dwelling units or "in-law apartments" that you are allowed by right to do so no matter what local by-laws say, but you still have to go through the town/City and I believe it only applies to owner occupied situations.Hope that's helpful!

Those can be very costly mistakes but very educational ones as well.The beautiful aspect of real estate investment is that there are multiple strategies that can work for each investor's situation; there is no "one right way."

Focus on function over beauty because there's a chance it will move a lot and tenants generally treat things rougher than you would.

It varies greatly  My parents live in a huge & beautiful home in the ‘Shelby Forest’ area (SF backs up to Meeman-Shelby State Park & there are many homes in Shelby Forest’s extended area up the bluff towards Tipton County that are close to million dollar homes).  

The property is in Chino CA 91710 - definitely not a ritzy Beverly hills place, but has potential to be beautiful.