Considering most homes will not cash flow with 20% or less down, plan on 20% and most likely 25% down required - depending on the cash flow expectations. 

ADU zone expansion is not certain, and even then who knows what the rules will be (owner-occupied requirement, etc).

For instance, knowing the income limits, family size requirements, and the types of properties that qualify can help you make more strategic decisions.

From what I've seen and read, most of the reason operators get in trouble is that there is some type of "event" that has occurred (usually their loan has matured or they've defaulted on their existing loan) and they need to refinance their loan and the lenders require a new appraisal to be done, which usually leads to a lower appraised value, and a lower loan amount, which "forces" the owner to pay down their debt.

You want a design that stays relevant, withstands high turnover, and doesn’t require constant costly updates.7.

You could find less expensive property in a not so good area.

Starting local offers hands-on experience and control, ideal for learning the ropes, while out-of-state investments can provide better returns but require a reliable property manager.

@Shayan Sameer If you can service all debt and property expenses and have money left over then I'd say it's worth it.

For an additional $450 they will include the required engineering seals.

When you sell a property, the IRS requires you to recapture the depreciation you've taken, which is taxed at a higher rate than capital gains.