As for building out the ADU, the cost would be dependent on the site conditions. $100k is only for the unit itself, there's additional costs for permits, plans, utilties, foundation, etc.. the list goes on. 

Insurance and umbrella insurance is ... insurance against events covered in the insurance policy - have you ever read your policy end-to-end, all the endorsements, exclusions, conditions, etc.? 

Could the loan not be based on the after repair condition?

I had no idea I was joining a social counterculture...but there it is, the Times can't be wrong!

Perhaps, but these buildings were built within the last 30 years and seem to be in excellent condition so there's no upside there.

The condition of the kitchen and bathrooms, outside concrete work and the condition of a possible front porch, exterior brick or siding repairs, is the exterior landscaping OK, closet space, any drywall repairs or painting.

As a general rule of thumb, you can buy three MFRs in Plymouth County for the price of one in JP.For specific towns, look at Plymouth, Brockton (west side), Kingston, Marshfield, Wareham, Taunton, Fall River and New Bedford.The big advantage to these locations as opposed to out of state investing is that you can always drive to them and check on condition and whether contracted work is being done properly. 

Purchase price: $95,000 Cash invested: $55,000 Sale price: $215,000 Pre-foreclose, elderly person living in the house in a extreme poor condition , we offer alternative for his living , We help the owner with a better place to live , we help the bank by giving them Money for a deal that will take a lot of money to be back and functional , we hale the neighborhood by eliminating a house that was a close to tear down and in a bad shape , What made you interested in investing in this type of deal?

The condition of the unit suggest location of this property is not that good.  

This item pairs very well with many of my other forgery items such [as] forged IDs and especially by forged Social Security cards," the listing advertised.