The ideal home price for you will depend on: 1) downpayment size 2) risk appetite, 3) preference for more cash flow or appreciation.Given our price points, our investors need to have 35-45K to start, on average.The typical cash-on-cash return on our properties net of loan payments, insurance, taxes, and property management fees is 6-8%.Ultimately, you can obtain financing from any lender, although we have partner lenders that can provide very competitive rates.

We just need to figure out how.I’d urge you to look at the insurance business, which has a great deal in common with real estate.

And typically long term rentals don't make it easy to include property management fees into the numbers and have them still work well.I would consider looking into STR type areas where you can avoid the risk of property damages (str and pm insurance covers almost everything that they might damage) and evictions/collections.   

Here are the numbers:Purchase price: 300k @5.5% (might be able to negotiate new exterior paint job credit)Monthly costs: mortgage- 1703 tax-245 (2933/yr) insurance- 167Market rents are 1600$ easy for both sides as is but currently being rented at 1410 and 1325 tenets pay all utilities (separately metered)Planning on putting aside 20% of rents for Maint, vacancy, capex and will be self managing property.

At the end of the day don't let pride get in the way of making the right business decision and that's a mistake real estate investors often make. 

Sources for insurance and property taxes: Insurance—ValuePenguin, State Property Tax Rates—Rocket Mortgage.

I understand that if I rent this ADU out, then I can have a tax write off on the mortgage payment and insurance payment for the the ADU's sqft portion.

you probably know this but - there are holding costs associated with most flips - interest on the loan, insurance, and sometimes others depending on the localityhope this helps 

Well if Proper won't insure it, many others won't as well.

You should have a clause in your lease agreement or an addendum detailing their responsibilities along with penalties for violations.At Keyrenter North Jersey Property Management, there are a couple things we always go back to when making these decisions:- How can we provide the best value/service to clients and tenants?