Hi Ryan,Typically construction financing isn't based on your taxable income and rather more contingent on your experience, FICO and the deal itself.

Quote from @Ogonna Odo:  Small ones will not, they typically like cash or checks.

It has to be something the individual wants, and let's face it, that isn't your typical BP investor.

@Matthew Drouin had a great reply:"Typically 50% of revenue is going to go right to operating expenses on small multi family. 

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

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

The typical income from a free and clear rental would probably be $800-1500/month - and on a financed rental probably $300/month on a good day in today’s market.  

As a SFR investor for over 15 years I have been wrestling with this question in the past, because it feels like you should upgrade to "bigger".I know for sure that I would not enjoy the ownership experience that comes with a small 4F, because in Milwaukee that typically also means lower income tenants. 

If so is there a typical investor profile? 

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