Looking for something with low acquisition cost, and meets or exceeds the 1% rule.  

I am estimating the note would cost 2.5k per month at most. 

Refinancing has more nuances than it seems, and so do closing costs.

Even if they don't realize how much money you're costing them now, someone will tell them eventually and I don't think your canned wholesaling response is going to do much to repair the damage. 

Since rental losses are typically passive, the best way to offset W-2 income is through Real Estate Professional Status (REPS) (750+ hours) or Short-Term Rentals (STRs) (100+ hours and more time than anyone else managing the property), which allow real estate losses, including depreciation, to offset active income.A cost segregation study accelerates depreciation, generating large upfront deductions.

@Ben Syzek with $50k, you're probably looking at a property with a total cost (purchase price + reno) around $250k.

In my market the valuation with f/f non commercial financing is typically lower than the hands off cost of adding the ADU.  

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Most sellers are going to want 20-25% down as it’s going to cost them 10% to sell.

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.