They use direct deposit for all tenant rents and over-communicate with me regularly.

@Gregory Schwartz thanks for your service!

Code enforcement relays that it is in the hands of the judge now, though it is worth mentioning that my friend has retained the services of an architect and is moving forward with plans to bring the property up to code.  

After talking to our finance guy, we've learned that there are no regular\conventional loans that we could use to buy it, but our numbers look really good if we can get it and finish that unit off.

"As of 2011, there were 883 MLSs in the US" (1).Google turned up a few things:1: https://en.wikipedia.org/wiki/Multiple_listing_ser...2: https://www.nar.realtor/IRPF.nsf/pages/ProgramElem...3: http://realtybiznews.com/the-history-of-the-multiple-listing-service-and-the-future-of-american-real-estate/98745195/

With the high construction costs nowadays it's hard to add that much value, plus ADU's don't sell at the same $/sqft as the regular house, and there's not a steady readily available comparable properties to base valuation so the easiest method is replacement cost.I hosted a Meetup and wrote about ADU's on my website.

I think finding people you can speak with regularly & are in similar markets makes the biggest difference.

Actually, I ran the report again with 20% down and got a negative cash flow and CoC because I have to service the debt.

If that is the case, then mortgage interest on a note is passive and not subject to UBIT.UBIT applies when a tax-exempt entity engages in a trade or business on a regular or repeated basis.Passive income not subject to UBIT includes royalties, dividends, interest, rent from real property and gains on the sale of an asset that has been held to produce such passive income.Trade or business subject to UBIT generally consists of services or buy/sell transactions. 

I'd love to offer help in any way I can be of service.