This ADU would be used to rent to friends or family and generate income.I cannot seem to find the answer online myself.

I wouldn't put any stock in what these online services generate, good or bad.

By renting out the additional units, investors can cover their mortgage and expenses while generating passive income.2.

Just need to make sure the property generates enough income to cover the monthly principal, interest, taxes, insurance and HOA (if applicable).

Will it be generating income at that purchase price?

What I also did though was give the borrower a PFS and information that showed I could pay this loan and had the ability to pay the loan whether it was generating income or generating no income. 

The decision to use Schedule E or Schedule C for reporting rental income from house hacking can depend on various factors, including the nature of your rental activities and how you've structured your rental business.Schedule E is typically used to report rental real estate income and expenses for individuals who own rental properties as investments or passive income sources.Schedule C, on the other hand, is used for reporting income and expenses from self-employment or business activities, including activities that are considered to be actively managed.The interpretation of the tax code and the determination of which schedule to use can vary based on individual circumstances and the tax preparer's expertise.Your tax preparer may reference relevant sections of the IRS tax code, such as IRS Publication 527 (Residential Rental Property), IRS Publication 334 (Tax Guide for Small Business), or other applicable publications and regulations.Factors that might influence the decision include the level of involvement in managing the rental property, the intent to generate passive income versus active business income, and the structure of your rental business (e.g., sole proprietorship, partnership, LLC).Ultimately, it's essential to work with a tax advisor or accountant who understands your specific situation, goals, and the nuances of rental property taxation.

I am trying to obtain and generate additional income, and expand my portfolio, and am seeking advice on some decisions and choices I need to make to help to accomplish this. 

Economies of scale helps a lot lol  You can even look at ways to generate an affiliate income from tenants which doesn’t affect your landlords in anyway and offers value to tenants.

There are topics on generational wealth, etc. etc. so people are definitely thinking about the future.