To thrive in real estate investing, you must maintain a firm grip on your finances.

A big challenge given the value is getting financing - this is too small for most HMLs I know.

If there aren't any massive physical problems with the property, it appears you can grow income and equity.You might be able to buy this with little cash out of pocket if the seller owns it free and clear and was willing to finance nearly all of it.  

Lenders and Financing• Can anyone recommend lenders in Destin who are familiar with VA loans and can work well with first-time buyers?

To thrive in real estate investing, you must maintain a firm grip on your finances.

My other advice is to make sure this is the best decision when balancing your family and finances.

I do not understand your remark as related to the DSCR loan.  2 ADUs are not allowed by f/f conventional financing but is not always enforced.Fortunately if you stay with the current tenant without a refi, by the time you pay principle it is likely the rent will have increased enough to absorb the increase mortgage payment. 

How did you finance this deal?

If you need help financing your next investment, I’d be happy to assist.Drago

Financing is also easier since lenders prefer predictable rental income over the fluctuations of STRs or MTRs.Short-Term Rentals (STRs) and Mid-Term Rentals (MTRs) can be lucrative but require more hands-on management.