They shot it down pretty hard - no habitable space is allowed in detached structures.  

It’s agreed that lower demographic properties have greater volatility and a much greater chance of having a disappointing (if not outright negative) ROI for longer stretches, due to evictions, turnover, lack of good tenants due to high unemployment, and general social pathologies and bad financial habits among the lower-income tenant group.

That can basically be my down payment for a tool shed.I agree that you should watch your spending habits but the truth is, it's about building your network.   

And if it's not "habitable" as-is, how about adding a 203k reno loan too?

I actually forgot to add one vital piece of information.....right now I am positive cash flowing $450 a month.

Get in the habit of finding properties and going to see them.

It's vital to have a rigid vetting system for tenants.

While I'm working on building capital for my initial investment property, I spend between 50-60 hours per week educating myself more about real estate or driving to analyze properties, in order to build good habits and experience.

They are watching  habits/tendencies.We used Frontpoint which promotes it's tenant friendly - it can move with tenant.

., just a habit from residential stuff.