It’s definitely small, and I’d never live in one but there is an appetite for it

That is, what is my appetite for cash flow vs appreciation.

That is, what is your appetite for cash flow vs appreciation.

But even in other passive routes, there are traps/pitfalls to look out for.Regardless, you should start by formulating your own investment criteria (e.g. level of return you are looking, your risk appetite, holding period, your source of funds/cost of capital, are you looking for cashflow or appreciation, or both, do you want to be active v. passive - you sound like a passive to me).

@Desmond Bucky depends on your risk appetite and potential income of ADUs can’t really use it as a contingency.

That will be an adventure in and of itself and will give you a better idea of your appetite for real estate. 

The economic struggles of the city will suppress home values and rents for the foreseeable future.

This could ultimately suppress investment returns in those other areas for newer investments, but inflate returns for assets already owned. 

The BRRRR method seems to fit my RE appetite and what I want to achieve in the long term.

Berrios artificially suppressed commercial property values and over-valued residential.