Not sure if this is the case in Portland but I suspect at best case the ADU is being appraised at construction cost which means in terms of value this is not a value add. 

Of course the work has to be done according  to current building codes, however, the same scenario in many places in the states (specifically in California) is completely different, because you have to schedule a city inspection for each construction milestone (rought electrical, rough plumbing ing, sheetrock, stucco and so on) and each inspection could take  4-6 weeks before the inspector is available to come to the site (at least that is the case in the bay area).

And Section 8 reduces the landlord payment for electricity to run any AC in the unit (at least that is the case in my area); so no AC means a bigger payment from the Section 8 voucher.Do make sure that there are receptacles close to windows to be able to plug one in where they will be needed.

Jim -Case in point, after about a year of operations my C-corp got a VISA card to simplify cash flow logistics and purchasing.

I would confirm that to be sure, but that could be the case in Texas

Once they tear down the building they slap a lien for the inflated cost of the demo on the remaining lot which will be recorded and would which would come up on title.If case is closed you don't have to deal with it but if it is open you can take possession and take over the case in which the judge gives a new buyer time to make it right but they order an interior inspection which leads to having to get drawings and permits if the work needed requires it.

Case in point is a Duplex for sale near me that needs rehab but is listed for 425K and will likely rent for less than 3K per month.

Is there a shortage of 3 bedroom rentals in the area (as is the case in many parts of inner Portland)?

Is that not the case? In

@JD Martin is this the case in NJ.