If you only have a homeowners policy, and something happens like a fire or a guest gets injured, and the insurance company finds out you're renting out the house, you're in deep trouble. 

Any "spreadsheet freaks" out there are gonna be amazed when you dig deep into crunching the numbers. 

Have done some preliminary research and will do a deep dive, just wanted to see what folks thought of there were any obvious reasons why or why not or any markets similar that I should be considering.

We try to get the DSCR to 1.2 before really diving deep into it.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Im weary of the work it takes to switch, but am looking and definitely considering it before we get in too deep. 

Hi, you seem like a potentially good candidate for DSCR Loans, a loan product that was essentially designed for exactly this - investors that want to build a portfolio relatively quickly and not be slowed down by DTI requirements or other hassles from conventional options.Would be glad to help, also check out this 12-part series published here on BP on everything you would ever want to know on this loan option!

The first step I'm doing is checking with the city zoning to see what they would allow before I get too deep with looking at plans, financing and construction. 

However I do go in slow season and I do not put in blocks. 

Once you are familiar with what a good investment looks like, then you can create a rule of thumb to help you analyze property faster and only dig deep on the ones that look promising.Here's a guide that describes what good cash flow looks like and how to analyze a property.https://www.biggerpockets.com/blog/rental-property-cash-flow...