Quote from @Fadil Khan: Interested in learning about investing in property for rental income, commercial property vs rental properties (section 8, traditional etc)1.

I'm considering converting the shed into a DADU to maximize the use of the space and earn some extra income. 

A lot depends on your credit score, income, and the specific lender.

No income should be part of this underwriting

In the cities the government got involved in housing and low income housing was built for poor people.

@Joy McQuearyRecommend 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?

As Marshall said we will need to know breakdown between residential and commercial, exact business types, and square footage + income breakdown for residential and commercial units.

It's all income driven. 

The current use of the property as a two-family dwelling significantly impacts its value and marketability, which is distinct from single-family homes.The initial appraisal comparing your property to single-family homes is likely an oversight, as multifamily properties are evaluated differently due to factors like rental income potential and investor interest.

Hey Asma, Cleveland attracts Section 8 investors due to affordable properties, high demand for section 8 housing and potentially good rental income.