In my experience apt. conversions from single family are more prone to noise transmission. 

A single family home with multiple ADUs cannot  be financed using Fannie, Freddie, FHA, VA, or USDA.

As already mentioned, you could sell via seller financing to lower AGI, as all you would have to claim is the payment income - until balloon payment received.Did know an investor that had 14 properties paid off and he moved into one every two years to then sell with the $250k single exemption.

Look, the shocking stat's that 70% of licensed agents didn't do a single transaction last year speaks volumes. 

Quote from @Alecia Loveless: @Jonathan Bombaci I think a good lawyer that has passed the bar to practice in two states is going to be more expensive than $200,000.

I'm the single breadwinner for my family (2 kids) so I don't know if I'd have the time and energy to both run this rental and manage my work so I can reach the income level to handle the bigger mortgage comfortably.I feel like this chance for us to have a rental property with positive cash flow won't come often so I really want to explore it.

Just a simple 499 sq ft city approved plan, single story, 1 bed/1bath/full kitchen adu with living space.

I have about 250k USD to allocate to this venture, but I may want to dip my toes into the market with a single-family residence in an area like Parma Heights and test the waters.

Generally, there are some programs for foreign nationals that are 25% for a single family rental and 30% for a 2-4 unit.  

To sell one of my investment properties, it is a single-family home that is valued at around $65k and no more than $70k, I have tenants who live in it for about three years and pay $950 a month in rent. the house is free and clear.