Moreover, I would recommend prioritizing a W2 position over 1099 self-employment/sales for two reasons.

The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

If you're open to expanding your search, Columbus OH also has positive cash flowing deals at an affordable price point - $120k-$180k. 

Don’t forgot to look at all the ways properties make money: Appreciation (#1 way), equity gain through principle pay down, tax benefits, positive cash flow (never as much of a wealth-builder as appreciation is in good markets).

In my home market of Florida, our insurance rates have made it much harder to have positive cash flow on a CRE deal.

Am I in a bad position.

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

My first reaction to your post is if you're purchasing assets that are throwing off positive cash but your DTI is going up then it may be time to re-evaluate the type of assets or the expenses associated with those assets.  2.

I've been seeing far too many people with bad experiences and not enough with positive ones, unfortunately.