My debate is this.As a general statement the rental property cash flow here in Los Angeles is VERY challenging to find.I am looking to buy a property with a detached garage and convert into and ADU for helping to offset to mortgage.Crunching some numbers up on $1M property with and ADU assuming (rough numbers) main house brings $5,000 and the ADU $2,000 I’ll still be negative in the deal after all expenses (vacancy, capex, repairs etc…)However if I will use it as a Sort Term Rental it will be cash flowing beautifully.What’s your take about buying negative cash flow long term but counting on AirBNB to bring in the positive cash flow?

Every property will need some sort of cap ex originally. 

Fow now you need to chip in a few hundred a month which isn't the worst thing considering you put 0 down.

Think worst case: if two or three of your selected, tenants had children, you would be on the hook for deleting the entire building - it is important to do this research upfront.Lastly, what I mentioned above is not specific to Section 8, it actually applies to market rate tenants as well.

For sheriff's sales (foreclosure auctions), its 10% deposit that day and the rest within 10 days.I'm sure this sort of thing varies widely from state to state and even within a given state somewhat.

Personally, I think even at our forever home we would like to have an in-laws suite, separated basement, or an ADU of some sort to house our parents. 

I did a pretty conclusive poll of about 14 lenders of all sorts and each and every one wouldn't allow larger loans for operating STRs.

It may be worth looking into getting some sort of partner that has greater access to credit or loan ability.

But let’s talk about the worst-case scenario you’re worried about.

What you are calling 'cash flow" is actually capx or repairs of some sort.