Then I consider letters of reference, cosigners, and added security deposit in order to meet approval. 

The information contained in this post is not to be relied upon.

When you work at a large corporation (national or global) you learn a lot in your role, but also by osmosis, just by observing other people and seeing how projects are developed, business is done etc.

@Sean GammonsConsider adding a partner for the second deal to share the down payment and mortgage responsibility, keeping DTI manageable.

They are using rules to add multiple ADUs.Here is a list of why adding a single ADU in dingle family  zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

For a city with such a large metro area and a growing economy, I believe it’s only a matter of time before this disconnect resolves.

If your unit doesn't stand out in other ways considering adding amenities like a hot tub, backyard mini golf course, making your airbnb dog friendly, etc.

Ya it’s more of a crutch to soften the blow of a large down payment. $40-$50k out of pocket, HELOC or private money loan for the remaining $20-$30k 

Since 2020 we've seen large asset value increases and large tax increases, and more modest insurance increases but we've been able to improve our profit margins sufficiently to keep up with inflation and even do a little better in many cases.

I recommend researching the average appreciation over the past 10 years in your target area to get a clearer picture.As you know, in real estate, ROI comes from multiple sources: Home Appreciation:  Reno Appreciation: Value added through renovations or improvements (usually just in the first year).