I’ve been thinking DSCR but don’t they typically have higher down payments and closing costs?

Typically, a rating of A- or better is a very strong company.

Typically, we conduct background checks on only the individuals who are responsible for the lease (primary resident) and/or cosigners.

What you will find is they typically appraise for far less than the hands off cost to add the ADU.  

Do you know how much the typical bills have been in the past?

It needs to be replaced with a typical bedroom doorknob/lock so a locksmith would not be needed in the future. 

Pace is a typical guru.

If this is the case then typically you only have to comply when you make alterations.2.

I typically focus on off-market deals, so I didn’t work with an agent to find this property.

There are also 'mezz' lenders (typically for larger transactions) who will cover up to 90% CLTV and require you to bring the remaining equity to the deal, and additionally there is Gap Funding in the form of unsecured personal debt.The latter can potentially be the most expensive option, but allows for true 100% financing as there are no restrictions for how to use these funds, as they are unsecured, and generally obtained through personal credit, income etc (since there is no collateral for obtaining these funds).