A bit about the property - the duplex consists of 2 detached buildings.

I've been part of his group since December and he's a really good guy to have on your side and to help you through obstacles. 

Yeah unfortunately SnapADU only handles detached ADUs now… 

We're actually in the process of setting our detached garage up to be a short term rental.

Its 1699 sq. feet. 3/2. on about 1/4 acre detached 1.5 car garage. 1.7 miles from University and 1.5 miles from Hospital.

Or id a SFH has a detached garage we can convert that into another unit to have a house and cottage on one property. 

Unless you have a ton of cash on hand, your first obstacle to overcome as a new investor is how to get cash to invest in future bigger deals.

If the equity is an obstacle, I would suggest focusing your time and energy on building relationships with LP investors rather than seeking out 100% lending relationships.

I close on my first property (duplex) on Tuesday, but have encountered the first obstacle. 

That said $125k seems a little pricey for the area, but it should cashflow even at that price.Pretty much the same answer for 3701 Ferndale Ave, except that I would shy away from detached homes because the exterior maintenance is more extensive (and therefore expensive).I think you're on the right track!