Quote from @Conte Cuttino: Makes sense @Andrew Freed so say if we I can make it additional legal space, do you think the 107K left in the property for the return is worth it or should I sale and move on? 

In general in single family zoned areas, JADU typically subtract value (I suspect largely due to the OO requirement).

.: Quote from @JD Martin: I can't possibly imagine what kind of townhouse could be worth all of that aggravation and cost.

You typically will see small banks/credit unions probably wouldn't be able to out-of-state, but otherwise any mid-size company or larger should be able to.

@Arn Cenedella i agree cash flow is good, but you really need to look at net worth. 

We have regular evictions at this scale and they typically will take a few months up to six or seven months if the tenant contest/hires an attorney.

Some may have very small thresholds for repair holdbacks on purchases but this is typically limited to make ready items not to exceed $2,500 in costs to cure.

Example: $500k home sales price, typical buyer agent commission of 2.5%, meaning buyer agent commission is $12,500.

Or you have to take a value add approach to make it worth the hassle. 

-------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?