This floor includes a kitchen, dining room, and living room but needs an additional bathroom to become a standalone rental unit. 

I find it comforting to live with someone that was referred by a friend or family member, rather than someone you find off Facebook marketplace or Zillow.

One important thing to mention with the 203k loan is that they require you to live in the property for 1-year.

Still living here today!

Should I consider converting my 1950's garage into an ADU as I live near a college? 

We are living this now.3.  

At that point, it was a "live for free" investment.

if this is an owner occupied property and the loan was used by the owner to buy the property to live in.. then they are by federal law able to request a 3rd party mediator to meet with them and a representative from the bank and try to work out a re pay planthe issue is many in foreclosure never follow up on this and basically waive their right to this meeting. that would be step number one get into the federally mandated mediation if the owner and the property qualify.

If a fire restoration company came out to inspect after the fire they would have deemed whether the structure was safe or not for repairs and to continue living in.Always good to do your own due diligence, but I personally think the plumbing and potential water issues pose a higher risk. 

I am looking to achieve a low down payment and renovate the portion of the home I would be "living in" over the year I am supposed to be residing there and essentially using that year to take my time with renovations as I am full time student and working full time.