Is this the only market you are looking at to invest in or are you open to out of state investing as well?

VA loans are the only loans that allow this, and there is no rate penalty for it no longer being your primary home.With that in mind, you could do a cash out refinance today at a higher rate than current market rates which will create profit on the loan, we can take that profit to pay for your closing costs.

we build at or slightly below the average new build in our market where there is high absorbtion 

.- Analyze Comparable Properties: If you’re working in a specific market, reach out to other landlords or property managers with similar assets.

Like @Chris Seveney said, private lending is a great way to go as well.  

I dont believe so but am not an expert on the topic - I do know that in Texas at least, it is marketed for owner occupants first and then after a certain time period they allow investors to put offers in. 

The big issue is building a single small residential unit is the most expensive residential development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

I believe the value would get passed to them and the current market rate. 

Depends on the market!

Generally, a good property manager will make sure to do the following:- rollout a strong marketing plan - thorough application process - know the fair housing laws- have the vendor relationships to take care of any emergencies that could happen- dealing with late fees & evictions!