Personally, I would be hesitant to jump into a deal when the existing partners are cash-strapped.

All of that takes either time, cash, or both, and none of it is a pleasant experience for you or the tenant.During that time, would you have enough cash in your reserves to cover the mortgage for 3-6 months while the eviction process is playing out?  

I thought cash flow had to make sense to get into a deal?

Lastly, renting by the room is a nice mix of increased cash flow and long term appreciation.

You can get those reimbursed in the loan, but you will need some flexibility for cash flow purposes.

ADUs in my area add a decent amount of value to a property, but I understand.

It takes positive cash flow to make a BRRRR investment profitable.

Napoleon was facing a major cash crunch to finance his wars.

When people here send me private messages or ask me on a call, one of the many things I'd tell them if they want to buy pre-construction is to check the developer's construction license and that it complies with the zoning rules (and I'll tell them if I know what those are).You woudn't believe the amount of people that are ready to put a sizeable amount of cash on the table but won't spend the little extras needed to make sure they don't lose it.

Ask for that amount of a discount for forgetting to disclose the fire. 3) you should be able to walk anyway as your inspection contingency came back unsatisfactorily. 4) is there really any structural damage or did they just leave behind charred by functioning lumber?