Income approach Also known as the rental income approach, this method estimates the market value by analyzing the property's anticipated future income and converting it to a present value estimate.

The itemized damage estimate that my insurance provided me lists an Actual Cash Value that is 15% higher than my Dwelling A Coverage. 

We are direct lenders, meaning we lend our own money, for flips within approximately 1½ hours of our home.We walk through every property to avoid surprises and to confirm the rehab estimate.

Thanks both.Would you say just as a general conservative estimate that the ADU $ / sq ft might be 50% of the main house?

If the stars align, we estimate that we could potentially earn $1,000 to $1,500 per year from the property.

In any case, successful wholesaling REQUIRES the knowledge, experience, and ability to accurately estimate repair and rehab costs and time.  

I estimated capex at 10% which I think is low considering the deferred maintenance, 10% property management, 8 percent vacancy.

Have you had it evaluated by a Realtor, or are you relying on Zillow or other online algorithms to estimate your property's value?

With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

Over estimate the costs and not need them?