In addition lower rents will decrease the value of a property, not necessarily its appraised value, because no buyer will desire to pay retail for properties with reduced cash flow.

Examples could include:Partnering with other investors to share risk.Using seller financing or lease options.Leveraging creative rehab techniques to save on costs.Negotiating with contractors in a unique way to reduce expenses.I’d love to hear any stories, tips, or approaches that helped you pull off a deal others might have instantly passed on.

But it seems to my simple way of thinking isn't that *also* going to reduce your monthly benefits to a large percent?

Depreciation can be applied to the investment portion, reducing taxable income.

This greatly reduces weeding.  

Even in the nice locations, most top out around $2,800.Of course there is also your increased insurance, vacancy, repairs, CapEx, and the never mentioned reduced rent on the main house since having a stranger living in your backyard usually isn't appealing to most renters. 

In the long-run this could reduce turn-over, maintence costs, vacancy and the need in the first place to have to offer $500 discount off the first month's rent.

there are of course more creative strategies to reduce that up front outlay, or recoup your capital, like, say, the BRRRR method. but they are time and energy intensive and certainly not hands-off. 

Interest reserves will greatly impact cash to close and cash to operate and capitalized interest rates will reduce required cash for duration of project.

Although this is a long term investment and not in the main stream, it has added a certain level of comfort knowing the above potential investment risks are to a degree reduced.