As a result, I paid approx $18,000 remodel, repairs, restrooms, electrical, lighting, and ADA compliant.

Because of our location and amenities plus the fact that these are ground level garden-style homes across from a rapid transit station we are exploring the idea of converting to full ADA spec handicapped accessible.

If you pass, then you enter into a section 8 contract.As for saying no pets, you can say that you don't accept pets, but as you probably already know, without citing the sections of the federal (ADA) , California state (FEHA) , and municipal laws (I am sure there are some LAHCID regs on this), I will just say that you cannot legally discriminate against disabled tenants who have service animals by claiming it violates your a no pet policy.  

I'll ad a few points from my perspective. 

@Jesse Curtis you already got great comments from Pat, let me ad a few considerations.The big wildcard in your math is capex. 

There is a magic line which exists between 2 and 3 family properties in regards to code, zoning and ADA compliance.

Some more info:-6000 sf lot-1000 sf house-detached garage-avg back yard --dirt, no sodI personally would think a deck would ad a significant amount of value to the end user.  

Since they get their rent through disability and if you go with making it ADA certified, you or your tenants may be able to get a grant of some sort to help with the remodel.

Does anyone have advice or education about renting a single family home and ADA issues...seems to me that the climate is ripe for litigation on ADA issues...and the folks that bring the suite always prevail.

I'm assuming 4.5% commission ad a buddy of mine will list for 1.5% and buying agent gets 3%.