Now I would like to add a level of privacy and would like to know how other landlords have set this up and if I am missing anything in my plan below.  

Things are more expensive (like interest rate + down payment), but sometimes I find it's still worth it to pay more (for example, if you like your privacy... which I do... so I'll pay for that). 

They would not tell me why they denied our contractor due to 'privacy reasons' and would not tell me the eligibility requirements either of a contractor so I couldn't even do a preliminary filtering.

First, I'd put up a big privacy fence...    

This was my home, so I won't be breaking privacy laws.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

Due to privacy laws, we cannot divulge the resident’s identity or apartment location but we feel it is important to keep you informed.

The window can either be clear glass or glass block, still provides natural light, increases privacy, and frees up the wall space.

However you look at it, I like do invest in houses and make them something nice that someone can live in and enjoy their yard and privacy, and not have the stress of the weed smoke coming through the ducts, or the stomping guy on top of them or the dangerous dogs that every walks around the complexes.

this provides you with no privacy.