But it's rare model and very risky for the investor.

The first thing we noticed overnight was the platform's speed, which increased drastically, as well as the new customer support who were checking on us consistently (which was a new thing), so things were turning out for the best, and we were making 1-2 deals a month out of that. 6 months ago, 10 DLC was getting approved in 3-5 days instead of +10, and we upgraded to the managed plans, and had a person manage our accounts, and were able to get to 3-5 deals.

Some owners don't keep track of their books very well. 

There are many things we can't control even if we did our best due diligence.

You have done very well for yourself. 1) Are you currently living at the childhood home or somewhere else?

You'll benefit greater from the appreciation and loan paydown in the long term and in the short term it's not much more to manage a duplex/triplex compared to a single family if you're managing yourself.In the end, I would give yourself a few months to talk and deliberate, but the best way to get going is to start looking in an area and look at 100 deals in that area.

But if you go that way try and structure it for what works best for you.

My initial thought was looking into the best approach (if any) with this lender to get one of these two specs at a discount which would get one of them off their books.

Market value: Best way would be to run comps and find houses with ADU's in the area.

Although loan amounts this small are going to be very limited to hard money lenders.