I also call references from previous landlords.  

Most of my investor clients considered properties over 1% rule as reference.

I ask this because you refer to 10% vacy/10% R&M, and 10% capex.

Get on next door, FB, etc. and post within your community to see who other home owners are referring.

I’ve been offering a $100 referral fee for existing tenants who refer a new tenant to any of my properties.

@Kyle Mccaw Okay yes are you referring to FHA loan?

The way I see it is I am 2 years into the amortization of a 10 year land loan anyway… so it might be a viable solution. 

Full interviews, full background check, do they keep a messy car, call their references---after you do that then trust your gut. 

@Kash Tacke I'm a big fan of ADU's in general especially here in the mid west, yes you could potentially be on the front of the wave, but housing density is the solution to the affordability issue, anytime you are investing with affordability in mind is a great strategy to me, and sound like there are some incentives or at least supporting winds form the local city, that in itself seems like it would be worth at least approaching an architect or contractor to bid up some plans or concepts to take tot he city.  

I wouldn’t think this would necessarily be the correct solution in a condo unit.