I personally use Excel for everything!

Excellent advice and very well stated, imo.I have some really good candidates for ADUs in California. 

As for the refi side, DSCRs are an excellent tool to utilize as they are based off the property, not you as the borrower, so no DTI hits / personal income verification required.

The cash that would flow in a 30 yr loan underwriting scenario is sent back to the bank so that builds equity faster.Forced appreciation, while excellent overall, I am not sure it helps in this situation to avoid income from cash flow as that will probably both provide equity, but also increase cash flow right away. 

Here's why:Affordability: Your $180K-$200K budget works perfectly here, with plenty of single-family homes and duplexes in B or C+ neighborhoods.Cash Flow: Rent-to-price ratios are excellent, with many properties renting for $1,500-$2,000/month.Landlord-Friendly: Oklahoma has straightforward laws that make managing rentals easier.Economic Growth: Both cities have diverse, growing economies, fueling rental demand.Low Taxes: Property taxes and costs are some of the lowest in the country, boosting returns.OKC and Tulsa also have strong investor networks to help you build a boots-on-the-ground team.

The property has been in excellent condition since it was built two years ago, and I’ve lived there myself without experiencing any similar issues.The lease is a standard Texas lease, and I’m seeking advice on how to approach this situation fairly.

That would be excellent! 

It's a fine line and we have easily a dozen other contractors who would give us excellent references about payment. 

Excellent advice, Dmitriy.

My goal is to maintain good relation with tenants and have excellent communication.