I think its a scary feeling, like the cost of entry is too high.

My income doesn’t show itself as being very high, but I have a relatively large amount of cash to put down.

And this low demand could be a couple of factors, either a rural location with low population density or the area incomes are not high enough in order to prevent a rent burdened scenario. 

Ironically, high income earners can make more passive income through tax mitigation than they can through buying high cash flow deals in nearly every situation. 

Not fully rented, but in a highly desirable location? 

The ground floor was redesigned for retail units, while the upper floors were converted into modern, open-concept office spaces.Modern Amenities: Introduced features like energy-efficient lighting, upgraded HVAC systems, and high-speed internet infrastructure.Aesthetic Upgrade: Refreshed the façade with contemporary materials while preserving historical elements to maintain its character.OutcomesIncreased Occupancy: The property went from 40% to 95% occupancy within six months of renovation.Higher Rental Rates: Upgraded spaces commanded rental rates 30% higher than before.Enhanced Property Value: The property's appraised value increased by 50% post-renovation.Investor's ROIBy investing in smart architectural design, the investor not only revitalized a neglected property but also significantly boosted their ROI through higher rental income and property appreciation.

Gutters are a must, I would highly recommend installing them on your property if you dont have them already.

Developers have been on a building rampage for the last 5 years, so we've got brand new apartments sitting vacant and properties less than 50% full in many areas of town. 

So I could hypothetically include a studio apartment above the garage and rent out the main house and be within the law? 

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.