A few PHAs will deny rent increases when they're submitted if they feel they are unreasonable for the area, so YMMV.

Increased interest rates over the last 2 years and increasing cap rates have put downward pressure on multifamily values.

Certainly increased given the market conditions and the advertising its increased. 

But I don't think a user should have to put in that kind of effort to make a simple change to their listing. 

I'm wondering how risky/wise it would be to increase my budget to $550ish knowing that I'll be earning rental income to help cover the mortgage. 

My end goal is simple- to have freedom in life and not have to worry about money and to be able to live a life I WANT to live.Thanks in advance!

Pay some guru $25k who will tell you that you can make $250k a year if you do this simple five step process.

Me and my wife decided to build an ADU on the property so we can increase the property value, and gain additional income passively.

Is there a possibility of increasing income?

Therefore its best to understand what you can build by right and from there determine if there is a case to be made for zonign relief to increase the parcels development capabilties and value.