Don't focus so much on a rather small chance of liability that you ruin your total likelihood of success. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Narrow focus - I know the zip codes I wanted to purchase well.

As a CPA focusing on real estate taxation, I frequently encounter property investors excited about cost segregation studies.

For the most part, the guys and girls at the ground level are still great and focused on what they do! 

I don't know specifically about ADUs and Chattanooga, but I have clients in other markets that focus on ADU construction on larger SFH lots.

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Do you focus on local goodies, practical essentials, or a mix of both?

You can't get mutual aid (with a several hour ETA) in time to stop it.