Building small units in small unit count is some of the most expensive development.  2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged (HELOC, cash out refi, etc).

Most of the time in these situations these borrowers are high net worth and think big picture vs. counting the pennies. 

I count the position in this deal as a $0 on my balance sheet. 

Other comparables with the same bedroom and bath count gross $60k-70k annually.

For these properties, I’ve calculated the Net Operating Income (NOI) based on 100% occupancy, then subtracted approximately 33% for expenses.Storage 1Unit Number: 105Size of Land: Litter under 1acre, probably not expandablePopulation: about 34K within 3 miles,Population Growth: 2-5% per yearTraffic Count: about 4KRent at 100%: $110KProjected NOI after deducting 33%: $73.7KAsking: $900KOffer price: $730-780K?

A child support or alimony order is a debt, it only becomes income when it gets paid out and that is when it counts as income for an applicant of mine.

Plus there is the prison that has employees.There are pockets of Palmdale where there are homes with a good bedroom count.

Most of the property management software listed here https://www.biggerpockets.com/property-management-tools support both ACH and smaller unit counts.

for the asset value, STRs have never had lower income (no counting any Covid lockdown periods).  

Search a radius and determine what the low/med/high properties are making by bedroom count.3) make note of what the top 5 properties have in common.