The house currently rents for $1450/month, we have long-term tenants, and we use a management company.

There are programs out there that can use newly appraised value at month 3 or even week 1 as long as rehab has been done.

If you're looking to invest long term and build a portfolio, I'd recommend going with a 2-4 unit and take advantage of the VA financing.

We're considering selling the property due to challenges of long-distance management.We're still interested on investing out of state and plan to gradually scale our investments over the next few years, focusing on areas close to Illinois, like Wisconsin or Indiana.Any suggestions on how to approach selling our multifamily property and buying in Wisconsin or Indiana in the current market would be greatly appreciated.

Why do you think purchase contracts are so long and have such small print?

How long did it take and is there anything I should prepare for? 

This may feel expensive right now but in the long run you will be glad you did.

The money needs to be kept in a 1031 account until you find a replacement property.Holding money in a treasury direct account is good for short-term.

Long story short, I am from a small town in a rural area.

It still would not alleviate the other issues with an ADU addition such as revenue out long (often many months) before any incoming revenue, the worse financing associated with the ADU, that it likely makes your primary a rent controlled unit, that it detracts from the primary even if it is just yard, that adding an ADU addition is work (likely more work than a BRRRR with much lower returns), etcCan you post the valuation you receive when you receive the appraisal?