I am okay with limited cashflow while I'm in my prime W2 working years but not negative. 

Here in UT we have strict occupancy limits in college towns of 3 unrelated people per unit.

If you dont have a great team to work with you can lose your shirt even if the house is next door to where you live... there are lots of great areas but only a limited number of great teams so our final choice has always been team driven... saying that we look for an area where there are lots of opportunities  and rental houses available in good areas using the 2 % rule  we found this in Detroit and Toledo  more then willing to share what we do and what we have learnt over the years

Additionally I think the coverage amount will be limited in some scenarios because by being on the tenant's policy, the landlord is no longer considered a 3rd party.

@Mike ReynoldsRegarding your comment that if you need funds you can use money from your side business:You can't use non-retirement funds to pay for expenses related to real estate held inside you Solo 401k.Subject to the contribution rules and income limitations, you may be able to contribute non-retirement funds to your Solo 401k (e.g. as an employee or employer contribution) and then you could use the funds in your 401k to pay for expenses related to real estate owned by your Solo 401k.

Having models is great if you understand their limitations.

I have considered adding an ADU in the back, but since I am limited to 75% of the main house square footage, this is also probably not worth it.     

A Solo 401(k) may be advantageous for self-employed individuals, offering the potential for participant loans, higher contributions, and no custodian fees, as well as higher contribution limits and the option for tax-deferred or Roth contributions.This post does not create a CPA-Client relationship.

Originally, I felt limited by conventional lending DTI.

When I went to cancel my membership, RentRedi gives you a large box in which you can describe to them why you decided to cancel, and there was a SHORT and hidden character limit!