Does your rental income include the cleaning fees and HOT that you pass on to your renters? 

Appliances, hot water heaters?

The ADU will be treated as a "feature," like a hot tub or giant unicorn statue.

The down side of using New western is that once you sign the contract and give them the earnest check you have no due diligence period and because the market is so hot now if you postpone signing the contract until you do your due diligence the property is gone, most properties don't last a full day, for that reason I think they are more suited to full time experienced rehabbers.

When I have a hot property and the phone is blowing up with people who want to see it, I do the process sort of backward. 

You need a budget to pay off the credit card debt and to build up a 6 to 9 month reserve account for household expenses.

I guess illogic is a harsh word, but I do think there is more of a speculative play involved with betting on appreciation - akin to betting on a hot new tech stock.

If the building is a converted SFH (i.e. old Victorian) then it is very probable that the cold water runs from unit-to-unit - each unit might have its own hot water line from the mechanical room (if the water heaters are there) to the unit.Gas:  Usually quite simple to separate the gas.  

If you have these hot deals find a hot money partner and get at it.. this is one of the biggest failures I see in those starting out.. they don't want to share can't put the deal together and just miss out totally half of something is better than 100% of nothing and or taking forever to get going.

Further away from hot spots would have better cap rates, but the trade off is don't expect the same appreciation rates