@Jason Merchey For more details, check out title 37, chapter 22 of the SC State law: http://www.scstatehouse.gov/code/t37c022.php (emphasis added):(30) "Mortgage loan" means a loan made to a natural person primarily for personal, family, or household use, primarily secured by a mortgage, deed of trust, or other security interest on residential real property or security interest arising under an installment sales contract or equivalent security interest against the borrower's dwelling and: (i) located in South Carolina, (ii) negotiated, offered, or otherwise transacted within this State, in whole or in part, or (iii) made or extended within this State.By definition, you didn't "make a mortgage loan" in the context of the legislation.

(A good rule of thumb is: at least 6 months' worth of expenses for single-income households and 3 months' worth of expenses for dual-income households.) 

However, nearly 20% of households are now multigenerational, and 73% of buyers are non-investors.7-8) However, from an accounting perspective, there is no profit until the initial negative position can be recovered....Then add in that the ADU is getting financed at home purchase terms, someone else has done the work, ADU income will start month 1.Fully agree that lack of leverage is a huge issue.

Median Price: $678,500, +6.02% Yoy.Closed Sales: 4,216, -11.89% Yoy.YTD Closed Sales: 21,325, +1.38% Yoy.12 Month Closed Sales: 38,118, -8.70 Yoy.Inventory: 6,035, +31.62% Yoy.YTD inventory: 33,454, -1.59% Yoy.New Listings: 4,349, +10.77% Yoy.YTD New Listings: 29,789, +8.16% Yoy.Months Supply: 1.8, +38.46% Yoy.Cumulative Days on Market: 29, +3.57% Yoy.Existing Home Inventory as a Percent of Households: 0.22%.

., personal, family, or household purposes), which puts this loan squarely in the consumer loan category.

The city's median household income of $31,843 a year is well below the U.S. median of $57,652.There are likely many factors that contribute to low incomes in the area, though one of the most significant is employment.

And as an overarching question - how should I apply my minimum standards for a household of multiple tenants?

I am of immigrant household..... 1st and 2nd gen.....

If your household income is less than $150,000, you can save on taxes without a complicated strategy.

If you are living at home, contributing the household (eg paying your parents rent, paying for food) for a few years that may be fine.