They sent a very professional slide pitch deck that showed all of their justifications around that specific market, e.g. employment market, housing shortage data, the new developments in the area, the air bnb data, etc. etc.They also stated the numbers were conservative (7 year to reach the target returns) and that likely it will be year 4-5.

It's great that you already have a home and potential ADU too since being self-employed in the arts can also have extra hurdles just getting approved for a loan. 

That is common from many lenders and it will also give you more time if need be if one of the other options does not work.

The rent growth rate is assumed to be 2%, which is a common growth rate, and the inflation rate is 5%.

In my life outside of real estate, I worked in Information technology where I have participated in the creation of open source software as well as documentation published under creative commons. lots of license thinking to borrow from.It has always felt wrong to attempt to monetize everything associated with real estate investing.

@David De La Torre it is common for electric and gas to be turned off when a tenant moves in, forcing them to turn it on in their name. 

Pitfalls to Avoid: What are the common mistakes new investors make that I should be aware of?

Common misconception is that DSCR loans are non-recourse because they can close in an LLC. 

Then, the opportunity to buy and completely control the property, while having their seller/wholesaler do all the work.Sign me up.In fact, 50/50 JV splits are common.

The front yard is a common area for all three units and also has a lot of irrigation.