Larger brokerages sometimes are in need of administrative work, which could earn you a steady income while also getting exposure to the field. 

Use that as a downpayment on the new larger asset.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

I would suggest going to independent landlords and staying away from larger apartment complexes.

There are also 'mezz' lenders (typically for larger transactions) who will cover up to 90% CLTV and require you to bring the remaining equity to the deal, and additionally there is Gap Funding in the form of unsecured personal debt.The latter can potentially be the most expensive option, but allows for true 100% financing as there are no restrictions for how to use these funds, as they are unsecured, and generally obtained through personal credit, income etc (since there is no collateral for obtaining these funds).

@Dave Bobka @Justin Arnold So, if an investor is looking for a larger, family style home for a Section 8 tenant that is dependent upon public transit, this would be a great property, wouldn't it?

Like Having a great base of index funds and a fully funded IRA before throwing savings into crypto or the newest AI quantum-powered dog walking business! 

If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it?

Others put down larger downpayments to make the cashflow work.

He can probably recommend a civil engineer that works on smaller projects like this (mine are all engineers working on larger developments not residential) and can likely take the lead on the permit process for you.