My original SFR was 1100sf and I added 2 units: an 800sf SB9 unit and a 750sf ADU (converted garage plus addition).

Additionally, in the R-7 and R-8 Zoning Districts, you need a Conditional Use Ordinance from the City Council to authorize the conversion.

This strategy involves holding the properties for the long term and profiting when you sell them.Here are some additional factors to consider when choosing a real estate investment strategy:Risk tolerance: How comfortable are you with risk?

This combined with my new boss giving me additional responsibilities (how dare he...) and the support of my wife prompted me to take the plunge. 

Next, arrange a site walkthrough to pinpoint any additional needs or potential challenges.

In addition, committing ~ $200K requires some level of sophistication on the part of the investor and you are more likely to find someone to agree to your terms in smaller transaction sizes, but even that will be difficult. 

Are there additional factors you think are worth considering?

We have not disabled ours or converted to gas, but Tenant must sign a Fireplace Addendum stating if they use it, we require a higher renter's liability policy with us as additional insured, rules on wood, storage, use, safety, they pay for yearly professional cleaning each year they are there, etc.  

Lot next door- possibly building additional home someday.

We didn't need to rehab except for a couple units when they became empty and we used cash flow (so no additional capital needed).The rents are now $10,700/mo and we are cash flowing well.