That being said, if you are doing a non-income based loan, then you wouldn't have an issue qualifying still.

@Jay Hinrichs @Patrick DesjardinsWe rep and warrant all notes (both re-performing and non-performing) to be a valid lien and to be in the lien position as disclosed at the time of purchase.Our current performance warranty on re-performing notes is as follows:"In the event that a re-performing note becomes delinquent, or enters non-performing status, PPR’s Loss Mitigation Department will notify the note investor within 30-60 days and then attempt to address and correct the payment issue prior to the loan becoming 120 days past due.

Say there’s a way to sidestep the door-opener issue.

Could run into issues.

Let any potential renter know that you intend to convert the garage into an ADU and address any potential issues created by adding the ADU (parking, shared yard, quiet hours, etc.)

That way there shouldn't be an issue with a due-on-sale/transfer clause. 

The issue with lots in gatlinburg and/or with views is the same.

Do a search on county assessors site and with the city to determine empty lot plans/issues.  

The main issue I've come across is that everything in this price range would be cash flow negative.

Lots of houses have flood designation amendments if they are up against little creeks, so they wouldn't disclose any issues because they had their boundary inspected and ruled OK.