I've been in mortgages since 2019, and since I only do DSCR loans, I don't bother marketing to California because cash flow is non-existent.$800k for a duplex is already ridiculous, but the cherry on top is $4,100 rent.

Banks were pausing on foreclosing during the crash on properties with large hoa balances (they already had too many properties)so the hoa’s were stuck with non paying residents since no one would bid on their hoa foreclosures since they all had upside down underlying mtgs.

This is clear fraud, non-fulfillment of contract, etc.

Im not sure which areas you were looking at in Idaho, but I'm very familiar with my service areas which include the entire panhandle and I'm happy to answer any questions if you want to dig deeper.

Through our dedicated network, KCCH has access to non-public resources to source SFR and 2-4 unit properties before they become public. 

Even if you have to pay more for the purchase think about the costs of carrying the real estate while waiting for the approvals  (debt service, property taxes, insurance, maintenance for the in-place tenant) and the additonal finance charges associated with originating an acquisiton/bridge loan and then a construciton loan at a later date. 

What this means for you s that there is a good chance that your existing SFH becomes rent controlled when the ADU is placed in service (I would like to see the law clarified on this as this practice goes against the rationale of the 15 year exclusion). the reason this is important is that any rent reduction places your base rent at that point for rent control purposes.  

These days I just say 25k or higher upfront non-refundable rebated back off your split as an agent when your first deal closes.

I have tons of experience inspecial assets from inside of banks and I run a company that does, among other things, purchase non-performing loans and work them out (for all you that are trying to purchase them, we're not sitting on any right now...just saving you the question).

So get a service that will make sure that there are enough funds to be transferred to paying for the seller's mortgage.