It ultimately depends on the specific underwriting requirements of each lender.

I kicked the tires on WI and MI a few years ago before ultimately buying in Maine.

But the majority of the time, doing the active diligence can ultimately provide the best experience for any placed tenant which in turn will ultimately help yourself, if a property manager, maintain a healthy relationship with your portfolio of owners going forward for them. 

We ultimately feel like this shouldn't be our financial burden.

Simple as that.So, ultimately my suggestion is to look into whether you can design your lease such that you're able to prevent and address hoarding situations.

There was a space in the basement we debated making into a legal 3rd bedroom (this was only 2 beds which did make us sweat some), but ultimately decided that the juice wasn't worth the squeeze.

Ultimately, I thought perhaps folks may have worked with a specific attorney that specializes in this sort of scenario, much like many of us share referrals for professionals that support the highly specialized needs of investors.

Plenty can go wrong and ultimately you are responsible for any damages.

You are ultimately adding additional detached living space which should add to the appeal to a future buyer/tenant, or for your enjoyment.Come on man! 

Ultimately want to focus on building a new source of passive income.