I will have access to ~1M in cash for down payment and closing costs (I would also have reserves, separate from this capital).

Here’s the REALITYWhile I compliment you on your ambition and drive, lenders want the borrower to have their own cash in the deal, not borrowed money for down payment.  

I have about $250,000 in equity in the property and a cash flow of $1200 not including capx.

What about a purchaser with a non-contingent cash contract?

Right now with the feasibility study We're anticipating about $4,000 for the SFH and $2,200/mo/unit on the ADUs, totaling about $10,600/mo in rent revenue so the initial rents look great.However, I don't know how the loan will play out.

If real estate is just a side gig and finding deals is tough right now, it might make sense to hold onto cash and wait for a better buying opportunities.2.

I have also looked into small apartments 4-10 units, but found they have an even harder time to cash flow with current rates.  

In this market a lot of properties cannot work for cash-flow or a flip.

If so they can get a ground up financing and use that cash on the down payment, as ground up financing can finance some of purchase and most of construction costs (on a withdrawal basis)

He acquired a tenant for the SFR at $2,550 a month, bringing his cash flow to $850 a month.