I also chose to buy the tiny studio because the cost to own was significantly less than renting. 

He does all the legal filings for the LLC coordinates the tax return and K1s for the LLC, pays all the tiny amount of bills for the LLC and acts as the broker as well.

Many BP gurus are aghast at even tiny, temporary negative cash flows. 

Seems like your worrying about something very tiny.

In North Park, TINY 2 bed / 1 bath SFR's (with very minimal lot space) START around $550K and quickly go up from there while your small 2 unit duplexes will start around $700KHope this helps. 

Since the structure is basically a shell, the % to depreciate is tiny compared to other types.

Drugs, domestic violence, refusal to pay their tiny portion of the rent, moving in extra tenants in violation of their lease, terrorizing their neighbors and us. 

Does anyone invest in tiny house lots?

To answer your question specifically, look for loose or curling shingles, discoloration, particles stripping from the shingles and falling in the gutters (they look like tiny pebbles), streaking, or roof leaks inside (a very late sign). 

I have several tiny morgages on rental properties through a small local bank...i have one that's even a 12,000 mortgage..if you find the right bank/lending officer, you can get the financing as long as you have the 25-30% downpayment that they'll most likely require..if you're interested in learning what a small local bank can do for your business, check out my blog that's linked from my profile (shameless plug, but i want more readers)