I don't observe too many people buying multi-family in the Bay Area with our rent control laws but there are deals here. 

This loans absolutely works on multi family properties and is the go to loan for North New Jersey. 

I leave the marginal ones waiting, letting them know I will reach out when I have a showing date/time.At the showing, I collect their completed application (sent via PDF prior or filled out on premises), scan their photo ID and last 2 pay stubs.Then, I do some digging around online (social media, court records, Google) and if it looks like they are representing themselves to me accurately, I contact them and send them a link to do the background checks (paid by them directly to the vendor). 

This would be more of a multi-family buy and hold play. 

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.  

I'm just getting started and want to buy a multi-family unit in the next 3-4 months.

For the cost I’m getting quoted for new construction ($110-190,000) I can buy another multi family property which will cash flow more than just the ADU ever will.

It's just a 2 bedroom/2 bathroom so not a multi-unit unfortunately.

I probably wouldn't want to use a DSCR loan then, because my interest rate on the multi-family is much lower than the current rates. 

We have a large following on social media and we have great standing with the business association in michigan.