Are you looking to just serve Colorado / full spectrum (including owner-occ, house hack, etc.)?

The bank notes with friends and family range from 8-10% annual payout.The community has 5 tenants, 4 TOH (tenant owned homes) paying $325 per month, and a house $500 per month.

The problem is a house+ ADU does not appraise in comparable sales to a duplex or two houses.

Most places I'm aware of don't allow you to have the only access to one bedroom be from walking through another bedroom, so will you need to add a hallway to provide access around an existing bedroom?

Please come back and post a follow up, even fi you wind up losing money on the transaction, because it is a good opportunity for new people to learn how difficult flipping a house and turning a profit can be.

Sometimes buyers don't realize all the houses a buyer agent had to preview (in previous deals, and just agent walkthroughs) to get the neighborhood vibe and trend...numbers and data don't tell the whole truth.I hope that after a year or two of the new rules enough buyers (who got burned) will see that having someone experienced represent and protect their interests is a darned great idea. 

Not all houses will cash flow or have numbers that work. 

Sedona is saturated, but i dont see that many houses for sale, maybe the returns are still good? 

With that in mind, here would be my priority order based on what you have written:1) Have all the houses inspected so you know about major deferred maintenance. 2) Pay for an appraisal on all homes so you know if you are getting a good deal. 

I'm currently helping two clients find a starter house in Bergen County for the same price $500k-$640k Max.