If everyone took the cash for keys approach, then the odds of a LL getting such a tenant increases.I have never had to do a cash for keys.  

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.  

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

They only accept cash.

For us, still in a growth mode, we take action and figure out how to redeploy that equity into other real estate through either cash-out refinancing or selling and 1031! 

In other words, you can manage for lease option properties with the same amount of effort that it takes to manage one rental property.

It may be tempting to treat them as one property and do what is called "cross collateralization" in order to maximize the amount you can borrow.

My COC return will vary depending on my out of pocket cash.

I have been reading the online resources about getting started, searching the market, and even doing tours, but I am hesitant to jump in and buy a house as I have quite a large amount of student debt.

I expect my cash on cash return to be over 90%.