It probably be best as a friends-and-family type loan, but I don’t have anyone around me that is an appropriate lender.If I have to, I can put the funds in myself, but its inconvenient, and would come from investments that would need to be sold, taxed, etc.

Make the place nicer or lower the price to get bargain shoppers. 

We looked at a couple different options as far as % downpayment and I figured I would refinance in the near future to help the payment get down lower.

If we sense there is a red flag, were asking them to upload additional documents like tax returns w2's etc.

One thing to add is that when you buy a new build, your PITI will likely not be factoring in the correct state tax number.

This implies residential units can be built at lower costs and provide better return than building a single ADU.11) adding an ADU to SFH can make the SFH fall under rent control.

Also what does the city say is the assessed value of the property on your taxes (it will be different than the appraised value, but should give you an idea).

So the lower the interest rate on the subject to loan, and the higher the prevailing rate, the more chance that a lender will initiate action.   

When you add purchase price, carrying costs for at least 6 months, materials, labor, real estate agents costs and taxes, do you have at least a projected 10% profit?

Every market in residential zoning has an expiration date, we just don't know what it is yet.The obvious solution is to buy in already regulated areas with tourist/commercial zoning.The returns are lower, but at least they can't go to zero overnight.