Yes we avoid custom work to help keep cost down. 

.: I just hired an architect to design and plans submit for ADU in my 8 multi unit to use the tuck under parking.Some people say do not try to be the general contractor as it will take way more time, costly mistakes and will be nearly impossible to manage with current work. best to hire a company that will do it all and cost about $250 per square foot.

If you have a good FICO, a decent down payment and closing costs, go ahead an do the first one. 

When you took in the increased cost of the build how did you arrive at that percentage?

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

@Dhruv Patel I believe you are getting ahead of yourself....Where in the US are you all-in (land acquisition, soft costs, hard construction) on new construction multi-family for $100/ft.

The very tragic LA fires have generated a lot of discussion about insurance costs.

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

Costs before that (during remodeling) are added to the basis.2.

It's probably best to have them pay out of pocket for a smaller cost like this.