I'm in the DC area, where multi-family units/duplexes/etc are basically non-existent, or command insane prices.If you were going to consider building instead, here are some questions:1.

But the name of the game is skate to where the puck is going....this market seems to have a vibe of affordable housing, space, yard, single family, etc... in my opinion Not sure about NY, but Cleveland has pockets of massive appreciation.Tremont, Lakewood, Ohio city - all neighborhoods of 2x-4x appreciation over 7-10 year horizon..... not sure now as I never had the stomach for the risk/reward.I always operate in the same market since I’m a high velocity flipper and deals exist all over the Midwest key is building relationships and trust in your market.

Put in new wall, floors, plumbing and electric, basic stuff nothing fancy, around the existing foundation?

It seems that private money lenders do not exist that will cover 100% of the cost  How is somebody supposed to break through this problem while not risking a house that is paid off and trying to stay out of debt in that house? 

It will more than likely only target existing low income housing.

Does the lift on owner occupancy applies to existing ADU built before 2020 in East Palo Alto or other cities other than San Jose?

It doesn't exist. 

From there my expenses will be almost non-existent as my parents are much more than understanding of the amount of money I owe and willing to help me in any way possible.

I usually give the seller 7 business days to provide items.1.Any Permits and Licenses2.Certificates of Occupancy3.Existing Surveys or Environmental Reports4.

I’ve called the county office that handles the sale several times to get more info about wether the tax sale wipes out existing liens or if the county even notifies the lien holders, to no avail.