Things like covering a wall with drywall if there's flaking lead paint is something a low or moderate risk authorized owner could do. 

Duplex btw Shayne

This is true if the duration is 5, 10, 20, 30, 40, 50, 60 years; it does not matter what number of years you want to start the basis at.I do not know your current living situation but knowing that I am pro investing local this is what I would do: 1) Look for a detached duplex local (in OC) that has sweat equity but can still qualifies for an FHA loan.   2) Purchase the detached duplex using the FHA loan (at 5% of FHA down your $50K will go a long ways) and house hack the duplex living in the more thrashed unit 3) Rent the "bettter" unit while referring to yourself as the Property Manager (not the owner) 4) while you live in the more thrashed unit I would work on earning the sweat equity (rehab the place) 5) when done rehabbing the more thrashed place I would consider if I want to keep the tenant of the other unit. 

The ADU is a separate building from the main house, but is the same address (unlike a duplex).When you calculate your proration for expenses, do you consider un-rented days as personal use days?

In general, SFR will never cash flow as well as duplex to quad.What I did not see is your cash flow projections (ROE), COC projection.I suspect that this property is not the best candidate for BRRRR (Refinance versus selling) but best to sell it. 

I purchased a duplex with one tenant in place.

@Angela MillerGo to Zillow and type in duplexes for sale that are in the zip code you are buying in.

We are under contract for a duplex in the Irving Park neighborhood and considering finishing the basement and going the Airbnb route.  

I have a Owner Occupied Duplex and I am really struggling with how I finance my next opportunity.

My first duplex.