I agree that there are ways but 1) rent ready without value add will be huge cash negative with realistic expense estimates 2) most single unit ADU additions cost more than the value added.  

My guests have been super easy and understanding.

Hi There - We have had several clients make the numbers work here in Chicago typically with either FHA 203k and home style renovation loans.I continue to remind everyone that a single or walk right now will be a double, triple, or even a home run down the road. 

It's possible to consider a single-family investment, but even then, it would be quite tight accounting for the down payment, closing costs, insurance, etc.

Primary Focus3bd 2 bth single family homes that are destressed, renovate, then rent to section 8 tenants. 

They mentioned he is single and quiet which is ideal for a landlord haha.

The property is a single family located in the East of Irvington, Indianapolis.

Also, any advice for avoiding those unexpected surprises (or at least making them less painful) would be super appreciated.

It should be telling that not a single person is coming to Clayton's defense.

That's a super super good podcast epsiode- you should probably share it and give it five stars and all that jazz. :) You can't utilize bonus depreciation on anything <50% business use.