The main issue is your exit is capped so if your costs go up, your profit goes down.

The main issues a lot of investors/PM's run into is the inspection period since Section 8 inspections are no walk in the park.

A lot of maintenance issues are repeated again and again on all the properties a PMC manages.So, a PMC has pretty good idea of what many issues cost.

I say to look at these hard because these items can occur for a period of 12 months possibly without major issues of seeing large cracks or settling if a lot of water hasn't been present in large volumes.

I'm also having issue with no onsite manager, but in regards to insurance. 

The issue is his definition of cash flow. 

We are a small partnership with 4-5 properties currently, but we are growing and hoping to find a reliable lending partner that we can do repeat business with.About 3 months ago, we successfully completed a BRRRR deal where we had excellent numbers, over a 1.25 ratio at 75% LTV, our guarantor partner has an 800+ credit score, and we had no issues qualifying for the loan.

Within a residence there is a presumed right to privacy and installing cameras by you or your tenants can bring you legal issues.  

Getting more mortgages does not help me with the two issues I outlined - spending less time on real estate and freeing up head-space.

If the commercial space isn't too disruptive, you shouldn't have an issue renting an ADU up there.