Good points, thanks for responding Ecky.
Financing shouldn't be a problem since I can take out a HELOC on my current home equity and cover the cost of purchase and finishing.
Your concern about the house being misplaced in the neighborhood is among my biggest concerns too. The average home value on that street is $322k. I don't know what this home would be valued at when finished (something else I need to look into), but it would certainly be higher than the average, and you don't want the nicest/biggest house on the street. It will be tough to blend in with the other homes, but I'd consider hiring a professional to give me some ideas. Landscaping and neutral colors can go a long way to helping.
Long term I'd probably rent the place out, so I don't need instant profit in a flip. Perhaps over the next decade or so the other homes will be remodelled. I looked at this house which is 3 doors down, and it's been fairly nicely updated:
https://www.zillow.com/homedetails/3...53000630_zpid/
Finally, the neighborhood isn't super nice because it's one of the few in the town without an HOA/CC&R, and it's old. But, it's very close to downtown, like 8 blocks.
Good point in there being more value in renovating smaller homes. This one has dual rental potential due to the ADU. Probably somewhere around $2,300/mo for the house, and $1,300 for the ADU.