ADU project in expensive market
Hey everyone, I'd like to give a bit of background so it's easier to understand where I am having issues deciding if I should move forward with this house. I live just outside of Portland, OR and the housing market is the housing market. In the last year I remodeled my home and rented it out. I'm currently living in a van (being a homeless landlord gave my lender a chuckle) and have made an offer on a home after 6 weeks of van life. The report is attatched and all the numbers are fairly accurate from what contractors have told me. It is a 2800 square foot house with an unfinished basement. My plan is to make the top unit a 4/2, rent it out for around $2,400-$2,500 and convert the unfinished basement into an ADU to live in. After a year I would move out and rent the bottom unit for $1,300-$1,400. My problem is that it needs a lot of work and would cost nearly all the money I had saved up. I was planning on buying a primary in oregon and using other funds to start cross state investing. Should I go all in on this deal or find something cheaper and less of a project? For example buy a 400k house that I can live in for 5% down and no rehab and take the other 75k and start investing out of state? I'm a newer investor and eager to hear different perspectives, thank you in advance for your words of wisdom.