Conventional loans (Fannie/Freddie) will let you do a cash out refinance as an investment property after the existing loan on the property is 12 months old.

This gives people little reason to choose older existing homes over new developments.

I haven't heard of that regulation, but that's not to say it doesn't exist.

Final appraiser remembered that when comps for exact property type do not exist they can opt to value as a SFH and justify value.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

They want you to bring an offer based on its existing condition.  

Free cash flow and lessening physical and financial burdens is always a plus, it should probably be included in the business community goals I think leveraging your existing business cash flow to diversify your income portfolio is awesome!

**Subject To Deals:**In a **subject to** deal, you take over the seller’s existing mortgage payments, but the mortgage remains in the seller's name.

You cannot refi most loans without an existing tenant and lease in placeBeing out of state complicates things a bit here. 

BUT, I am confident that while the above covers MOST situations, in a country of 300 million + people there are locations where a 12% ROI exists for a car lot - though you may be giving up the “windfall” of a developer wanting and willing to pay a premium for your lot.