If is 65% and below LTV you won't need to provide reserves. 1.

The struggle comes when you plan to sell, pay close attention to how the bank would treat the loan in the event you would sell.Even though its a bit more work, banks are typically open to these loans as it provides them with additional collateral in the event of default.  

This is a story from my past that provides a perfect example as to why investing in tax liens at auction is so dangerous for any but the most experienced and knowledgable investors20 years ago I purchased a SFR as a long term rental investment that sat on a double lot.  

I interpretttev @Alan Asriants statement different than you but agree it is not clear   He could be indicating pools, basements, sunrooms do not provide a means for an extra tenant.  

In early Dec I offered to a few (4 or 5) newbies to provide financials and show them the last of the work. 

My focus is on providing either turnkey-style space for those interested in temporary, infrequent use or long-term leasing for business folks who require conference room space (or perhaps event space).

Most lending is based on cashflow, not the 2% rule (although still a good rule of thumb for some types of investments), might have the most help from the group if you provided some of those details here just so it'd be easier for us to help you best. 

My conclusion is that take the provided ROI calculations from REI as purely estimates.

I can provide support of checking in on contractors, staging rental properties, walk potential leads to give you an idea of the property in person or what the area is like, meeting with agents, and drafting scope of work for projects. 

You will probably want to pay attention to the income tax basis to any proposed transactions as well as be wary of any transfers that cause a property tax reassessment, depending on whether that amounts to a big increase in taxes or not.Feel free to reach out if you would like referrals in San Diego County in order to work remotely.