I just finished up my first fix & flip and sold it last year.

You can take an "A" neighborhood asset in most locations and fail the 1% rule but these assets will outperform on a cap rate basis a "C" location asset that "passes" the 1% test  if the analysis is not so narrow minded and includes actual expenses, cap ex and vacancy. 

Seek out locations that are undergoing gentrification, development, or expansion where property prices may increase over time.Creative Financing: To fund your local deals, consider unique financing solutions including partnerships, seller financing, or private loans.

Before the Karens potentially in this thread get self righteous I am not providing legal advice and @Adam M should retain proper legal counsel to prepare all documents associated with this syndication including compliance with SEC regs. 

They'll be able to take the property information and get policy quotes from a few different companies so you can compare what is included in the coverage, the liability coverage, deductible, and monthly premium. 

I was not aware that it will solely be based on the work done rather than also including market comps.

The loan balance becomes higher because lender is including closing costs and escrows into the loan amount .

In today’s high rate market, 1% ratios do not cash flow at high LTV in most markets.   50% expense ratio $2550. 80% financed at 7% (OP indicated and does not include the plumbing) P&i $3,332/minth. $5100 - $2550 - $3332 = -$782/month after achieving market rent.  

The ADU did a site visit, and the takeaways included adding a second story would be significantly more complex and expensive than a backyard ADU.

Quote from handy Man/Contractor around $25,000 not including windows.