I own a small 2 bed/1 bath home on 40 acres 30 minutes north of KC.

Was it due to features, lack of scaling, or something else?

Your first trip should be to the Planning Dept and ask if it's possible based on the zoning, and if they would view it favorably.

Your zoning should be ok, but you want to do everything by the book (which can be costly) to percent future insurance claims or injury claims in an unpermitted basement living space. 

It typically takes away your exit strategy of a deed in lieu of foreclosure2.

They're cheaper, you can do your own maintenance and if they break, you buy a new one!

Also, be aware that if you are thinking of doing a BRRRR that maxing out your HELOC can have a negative impact on your credit score so when you go to do the refi you may potentially run into issues.

Congrats - who was your coach?

What matters are your actual goals with the property.

Is your income in a place that you could fund that for awhile until rents catch up and make it positive?