For this particular duplex, both apartments are in  good/ modern shape, fresh paint, nice flooring,stainless appliances, and some little extras (lighting or tile). 

People are always looking to get out of the cities and breathe some fresh air and what better place to do that then in the beautiful Red Rocks!

I spent a lot of money adding new laminate, fresh paint, and a new water heater when I moved out, so the property is in good shape.

Add to all this an influx of California 1031 money and 5 million people baking in the deserts of PHX (the next closest place to cool off adds almost an hour to the drive from PHX). 

I do only have 1 section 8 tenant and that was in a freshly rehabbed property with new A/C and is also managed by a PM so I can't say how the inspections actually go, but that is what their requirements checklist states.

That process is very simple and can cut your cost from ~3500 (1200 sf) to little over 600.Changing fixtures in the kitchen and baths can boost appeal as well.Finally, of course a fresh coat of paint on the walls that are a good neutral color.

One elderly lady actually baked cookies for my tenants just to say thanks for being such an improvement.  

I guess I am wondering how most of these partnerships work for a fresh beginner.  

not to sound like a crunchy granola here ...my three favorite tenants have been fresh out of college and employed but other landlords didn't want to take a chance with them.

But, look at that scenario with fresh eyes, ie: would you or a potential real estate invester purchase this specific house with ADU at the current/expected future market price?