With such low rental yields, the return on investment (ROI) and cash-on-cash (CoC) return are negative when factoring in mortgage payments only, not including any other factors.In this market, it seems almost impossible to make a profit using traditional rental property investing strategies.

I buy where people want to live, not where property is cheap due to low demand.  

My goal is to spread my funds across multiple investments to grow my portfolio while keeping my down payments as low as possible.

Rates will be 10-13%, depending on the terms.A HELOC can be a good tool to leverage your equity for a down payment without touching your current low-rate mortgage.

Separate checking accounts not required, but you need to maintain separate books and records.The TREC requirement is correct, but odds of enforcement seem low.

You may have to do month-to-month leases.Regarding the basement, most cities really don't care if the homeowner chooses to live in the basement.

The first thing to do if this is the route you want to take is build a team of rockstars in the city you choose to invest in.

If choosing to sell the DADU, did you split the lot or is this wrapped into condo-izing the home and DADU? 

If you choose to work with them however, I recommend flying out, or call a Real Estate Agent/Contractor/friendto video call you, and see the property before you sign the dotted line.

When doing this strategy you will can put down as low as 3.5% -5% down.