I use this type of system in a ten unit that I own because the cost to submeter each one was cost prohibitive I usually don’t include other items like wifi/internet unless it’s a furnished/short term rental. 

I wish I could make it simpler to understand, but I am at a loss if that isn't clear enough.In one year's time, we will have a much clearer picture of how many people in D.C. who collect a W2 from the government (not including welfare, Social Security, Disability, Graft, payoffs, etc) have "left the payroll". 

Even when they are charging you a very high percentage, the agent is probably operating at a loss.

The main issue is that to do the ADU you have to spend so much bringing other items up to code like electrical, plumbing, lighting (windows) and egress.

They refuse to give investors the information they ask for such as who is the loan through, what kind of state it is in, and who are the GPs, LPs, profit and loss statements.

Wanted to get some thoughts from more seasoned small multifamily investors on a few items or any other suggestions:- Any specific pros/cons of any particular states in SE (TN, AL, GA, NC, SC) to consider?

Depending on the loan product, you may be able to exclude business debt once the business has paid the debt directly for 12 months.The income and losses related to the operation of the entity will affect the income side of your DTI (like Jay explained) if you own 25% or more of the entity.

My advice would be to underwrite as many house hack opportunities as possible and assume 100% vacancy + a large capex item so you stress test your worst possible scenario and can you get through this.

So all in all - it was a relatively easy learning lesson and not much loss on my end.  

Tenant had some risk items such as extension cord going from outside to inside which invited an inspection.