Here are some specifics:Purchase price: $955KSeller Finance offer: 20% ($190K)Reno cost: $90K Ideally we would like to do a Morby Method where we purchase the home via conventional mortgage or hard money lender and on the back end have the seller lend us the $190K with a second position lien on the property and a 5-year payback.

But if I've marked those up by 30% then it only costs $1400 to fulfill.

You can get something like Netflix, Roku, or over-the-air antenna which gives them local TV channels but your cost is very low.

The result is that the cost to add a hands off ADU is much greater than will be added by the ADU.  

Higher cost markets produce more equity gain for the value add.

Even with an FHA, the work needed can creep upwards of similar or more than the closing costs, so you're looking at doubling your cost to own a multi-family property. 

I am not a fan of selling anything once it has been purchased and stabilized- but that’s just me. 

Yes, if you refinance or sell the property within the term of the prepayment penalty, you will pay the penalty because it will be added to your payoff amount.All prepayment penalties are different and you should read your note to find out what yours is specifically.Hope that explains it.Stephanie

The sell that  non-profit agencies do is that there is on-going support for these recipients to improve their credit.

Seller distressed and willing to sell his property for 22% discount, however his family is living inside rent-free.