After moving out it would be cash flowing negatively around -$1,200/month before taking into consideration capex, maintenance, etc. but while living there and renovating the unit we will have gained approximately $125,000 in equity.Property #2: 3-bedroom unit with a separate basement entrance that could be converted into a 1-bedroom basement apartment, but in a slightly less appreciating neighborhood.

Until many of these areas convert to a LTR, get foreclosed on etc it will be like this for a good while.There is also the uninformed that will still buy in one of these areas and wonder why they aren't making money.

I’ve previously posted about converting my garage into a studio ADU.

CREDABILITY Converts.     

Just will need to convert dining rooms/basements into the last couple bedrooms to hit your target rent, but you can do that at the end of your time living in the home!

There may be other options there.But, from a strategic angle, that is where a random guy on the internet jumps in and says "You might be able to buy the property from your mother on a Lease Option" that you make the payments and maintain the house with the option expiring on her passing date, converting back to her estate which you and any other heirs will inherit".

Many are secondary or investment properties owned for sometime that were converted to full or part time BNB usages.

I have a listing for one that I think could be converted into a duplex plus a small mobile home park, but I don't know the clearance for services and the dwellings required in Texas. 

I bought a single family on a double lot that I converted into two unit.

Zeona,I listened to your great podcast a few weeks ago and it helped me decide to take two smaller SFR's in the downtown/historic area of Ocala and convert to MTR's.