@Nitesh Chand Does your lease agreement with these tenants include verbiage for if you sell? 

That does not include any capital expenses. 

This would include adding another bedroom and making it a full 2 bath.

Typically this takes 6–9 months, including 2–3 months for permitting and 4–6 months for construction.You can browse their current plans online, with design costs ranging from a few hundred to close to $2,000: ADU Fast Track Plans2.

Or the listing agent includes it in the property info on their website, or shares it when a showing is scheduled.

Also make sure to consider all the aspects you can including the tax differences. 

I am being told by these lenders that I need two years of rental income included in tax returns for them to not use 75% of the rental income per the lease.Essentially no other debt that could help reduce the DTI.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Investing always looks scary I don’t wanna lose money. my monthly payments are 3k including taxes I am in NJ so property taxes on an acarage house is still high Investing can be scary. 

One thing in real estate and probably most other businesses is that most people including me don't know how to measure and evaluate risks.