OR even less risky is investing in bonds/CDs, etc.

It can be used to monitor markets, filter results based on lots of different criteria & even includes annual revenue numbers that you can work backwards to see how certain markets/properties are performing.

Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I even try to unsell them on the business by sharing my financial losses, litigation,  market shifts, permit purgatory, shady contractors,  clouded title issues,  paranormal activity, squatters, mold, etc.

I filled out their survey and provided some constructive feedback, even though I don't own a STR here.

You could trim your expenses by eliminating property management - you can absolutely do this yourself on a 6-unit, even as a newbie.

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

First thing I'd look is the zoning for that property to ensure ADU/multifamily is even possible.

And honestly, even a DSCR loan by itself, under an LLC, also doesn't provide much shielding.