The first scenario seems fine to me.

I personally think you're fine going with an Adults Only theme.

Only you can decide that.Some are fine with $1 net.

I just use their templates and they work fine.

I don't think the PO cares, just your tenants.If you can do this then you should be under cover and fine unless you have a real aggressive building code enforcement or someone complains about something.I know of an effort in Savannah to make a duplex like this to code. 

Made a claim for the roof and it was fine but then I had a renter commit suicide this year. 

As long as you are reporting the rent payments (and taking all the many expenses) you should be fine. 

@Kenji Otokawa Paying them is a fine idea, but it will take a lot more than $100 to get a good one to give you a REAL BID.

If you have a strong work ethic, patience, and a desire to have true wealth, real estate investing will give you a much bigger ROI than a Roth IRA or any other stock market vehicle.But if you just want to put money away and never think about it, a Roth is a fine place to store it.

You can stick to the mainstream and go after the same people your competition is (which is totally fine), but you can also build an advantage by figuring out how to capture the fringes that others ignore.I'm not claiming that you *should* do this or that any of this is relevant to your situation since I don't know anything about you, but wanted to at least share the perspective behind how we think about it.