I have my primary residence single family home paid off in full Zestimate ~$500K, and no other outstanding loans for cars, schools, credit cards, and in good financial position with 2 years of reserves for expenses, etc.

Will be an immediate impact either way.Again cost declines are normally slower than increases.  

A factor could be I'm looking at putting 3-5% down rather than the normal 20% to save capitol for the basement renovation.

What you have is normal .

My general approach to under-market rent is to do larger than normal incremental increases.

Ready for stucco as well.I’m installing drywall this weekend Inspect for Monday and finish from there, then final.as far as that goes with plans, permit, engineering, and this scope of work so far I’m into the ADU $25,000This is for a 20 x 19 2-car garage conversion.380 ft.².Let me know what you guys think.Thank you for your time!

Short Term Rental, Long Term Wealth by Avery Carl is your ticket to success. 

After the year is up can I house hack the side I was living in like normal?

Or, when the lawn boy goes to get lawnmower gas in his uninsured car and wrecks into someone on your business.

We then spent around $30,000 out of pocket on renovations, including repairing the roof, upgrading the electric panel, installing new HVAC, and putting in a new kitchen.After completing the work, we refinanced with LendingOne using a 30-year fixed-rate DSCR product at around 7%, which resulted in a net cash-out of approximately $15,000.A couple of things to note:I'm out of pocket on this property for around $40,000 ($25k down, $30k rehab, minus $15k recaptured).I'm thrilled with this amount since it's far less than our "normal" 25% down strategy would require based on the higher value.The property appraised for $330,000 after the renovations.The key point for me is that this property is now netting around $800/month in cash flow.