If some applicants fall below your requirements, then everyone would be considered "conditional," you can raise the security deposit to mitigate your risk of someone breaking up or defaulting. 

I do not like this as obviously if a business account is only accumulating rent from 1 property, it wouldn't accrue the cash in each as quickly as it would if all of the rents were funneled into one account.. and it makes paying the bills a bit of a pain on each of the properties as I am having things done to the properties, lawn care, etc.. constantly has me making owner investment deposits into each to cover initial expenses associated with the properties.. etc. 

Deposit the checkSometimes the banker will want a copy of the POA for their records, which we'll gladly provide.

I advise my clients to compare their property to the comps they are looking to chase for the ARV & start with the kitchen/bathrooms and then work their way through their budget to match or slightly top the comps in the neighborhood.

According to Furnished Finder, there's a shortage of MTRS available within the South Bay and a strong demand to match. 

An STR will look every bit as good as it did when it started - because it has to.Not only that but it is much easier for property managers to get repairs reimbursed when a guest damages something as an STR as opposed to when a long term renter moves out and outside of the security deposit, good luck. 

The main downside is the loan limits for a house with ADU match a single family, not those of a duplex (which is higher).

You can even sweeten the pot by telling them they don't have to clean, and you will hand them their deposit on the day of move-out after a 10-minute inspection to verify there are no damages. 

If not, the contract can be terminated and you would get your deposit back.

If you are self employed you can also look at bank statement loans assuming you have a business with high deposits.