The following is from Stessa in regards to your situation:"The cost basis used for depreciation in this situation is the purchase price of the home plus certain closing costs, plus qualified capital improvements (such as a new roof or other renovations).

Usually, borrowers purchase the lot first and we usually lend to 80% of cost up to 70% of the as-completed value.

I track everything at the "buy" on a spreadsheet as far as income, expenses, CoC return, ROI and have another spreadsheet to estimate and track all rehab costs.

I do drop down significantly, but I factor in what it would cost to run my place on a day-to-day basis and make sure not to go lower than that.

Not having an exit strategy on two different partnership ventures led me into a court case and cost me tens of thousands of dollars on another.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

I may get flack for saying this but there is a wealth of information available at little or no cost and local REIGs that can teach you about your local market. 

I know a lot of people who do it, I would ask what is your exit. for example we have done it when we were doing some renovations and had a line of credit as well that we were going to transfer the cost too.

The cost to get the ADU rent ready and fully permitted was $25,000, most of which was the exterior landscaping.

Appreciation there is low, rents are low, and assuming maintenance as a fixed cost (for example, a hot water heater costs $450 from Lowes in Allentown, $450 from Lowes in Scranton, installation takes the same time, and labor costs aren't all that different), the ROI isn't great.