Is there some kind of BP standard assumption on how much money we are putting down when labeling a property as cash flowing vs. not cash flowing? 

Is the solution to rent another shed to the tenant?

They are functional and not pretty. https://www.dormakaba.com/us-en/solutions/products/door-hardware/mechanical-locksSchalge is a good brand but not familiar with what they have to offer.

Like I mentioned, those are just ideas, if you two can creatively come up with a solution that is mutually beneficial, you can do it any way you want.

We are renovating a small 800 sqft home and need an affordable heating / cooling  solution very soon. 

Reason is that it's a turnkey solution. 

However,  this is not the proper solution to accomplish this goal.See, https://www.nmhc.org/news/articles/the-high-cost-o...And, https://www.gsb.stanford.edu/insights/rent-control...Frank

Generally speaking, if you borrow 100K (70k for the purchase 30k for repairs/upgrades) what will happen is this: To close they will require proof of 1yr homeowners insurance to be paid, eliminating the need to escrow it because HML are short term solutions they will probably require it to be paid back within a year.

Because we found out the home fell into this category (after our offer was accepted), and we were insistent that we wanted 2 income producing units, we began to solution for this issue. 

I need simple, streamlined solutions.