TAYour ADU application will likely need to be signed by the tenants occupying the property so having a conversation with them is important.

There could also be a change to the HOA by-laws eliminating the right to lease and alternatively if too many units are tenant occupied it could impact the warrantability of the financing which would be problematic if you wanted to sell the unit.

But, VA is the only "owner occupied" loan type that you can actually refinance after you have converted this to an investment property! 

This condo was purchased both sight unseen and occupied.

Alternatively they can purchase a portfolio of occupied homes at a discounted price because the seller of the portfolio in most instances first tried their hand at selling the homes individually to the owner occupant and after experiencing 13-15% in disposition fees and expenses realized its not worth the effort and better to package the assets and sell discounted to another investor.Keep in mind, most of these SFH's are in stagnant markets meaning limited appreciation and if you ever took the time to look at an amortization schedule  there's no meaningful principal paydown for many years.

@Samantha Springs can you rent a room out in the unit you occupy as your primary?

In most states, foreclosures can be very risky:1) They are often occupied and you can't approach the occupants to see the interior.

It's smart to consider your options carefully.To give you a clearer picture of the market, properties listed on PadSplit in the Dallas-Fort Worth area, including Garland, are currently 94% occupied.

I currently own just one property (a duplex) and it is owner-occupied, I live in one unit and my tenants rent the other unit from me.

Consider spending some time in these areas to get a feel for the market and see if you'd enjoy living there. you ever dealt with ground up non owner occupied construction loans?