I would love to hear anyone's success stories on this method since I cant start with a multi family locally and would still like to get in with a low down payment.

Over 200 properties to date we control or own using this method. 

Any thoughts on this method?

Will I pay self employment tax from any profit on this?

Funds can be wire transferred, but to get a mortgage here a bank has to verify funds, employment, credit etc.

I do notice alot of the workers like to call me "Boss Lady" I wonder if they are just assuming I'm their employer and could sue me in the furutre if they're negligent, get into accident or slip and fall? 

I've scoured the MLS for about 8 wks now and found several "potentials", however I'm not finding any success yet in striking deals via this method. 

Unfortunately, we've been self-employed in a non-real estate industry for a LONG time now and we couldn't document our income in a way that was sufficient for our lender - so we did a cash deal instead.I thought the equity in that property and in the home we own outright (about $256,000 in total equity) would be enough to reset the conversation for our next deal, but our lender says existing equity will always be overshadowed in our situation by documented income (or lack thereof.)  

We have an over-employment problem here in this state.

It will need to meet all fire and safety codes per your local building codes.Done properly a secondary unit in a SFH is the best method to generate positive cash flow on a otherwise underperforming asset..