Specifically, I am wondering about the income that the ADU on the new property will produce, and whether it is considered the same way as the rental income on a multifamily is.

My place is a bit outdated and I know I could get higher rent with some renovations, but this is the way I look at it.I have looked into investing $80k or so into my property just to update it and get it a bit more attractive and then doing a HELOC or Cash Out Refinance to purchase another property and continue on the BRRR strategy.

Memphis has a lot of pockets in recovery and many that are fully recovered and producing big numbers. 

This is acting as an additional upward pressure on income producing properties.

US News just chose to weight the number based on population, so it pushed TX down the rankings, even though they produce more patents that MA.

Once the property is in my name free and clear are there instances where banks will view the property as an income producing asset and lend the renovation cost just using the property as collateral rather than require down payment for the loan?

*near RV parks, hotels, tourist attractions, restaurants. 

The type of home you get will affect the type of tenant you attract.

I believe that option 2 is more attractive to this class of tenant than option 3.

Additionally, if I were to investor-occupy as the sweat-equity, numbers-wise I would assume a duplex would be less attractive than a 3-4 unit property.