Some things came up in the inspection that increased my potential rehab costs to 20k on the high side, likely 18k.   

First thing to do is check with the city or county to make sure the ADU would be permitted to be a STR.

How those people should be prepared to report loss on tax return?

I’m not sharing it to criticize the site owner, but rather to highlight how small mistakes can cost you money when advertising on Google.

Feel free to reach out - I'd love to connect and learn more about what you do and who you are!

My understanding is that most lenders will file a mortgage lien on the subject property as soon as the loan is signed so as to preserve their rights, but what if the lender did not do so before the borrower defaulted?

Questions that need to be answered?

Looks like you are going to profit $150K after commission and closing costs.Sounds like a good deal.If you think the multi-family duplexes are going to bring the price down.

The most important thing is to understand your coverage before you have to use it. 

I'm excited to be here and learn.