Recently, my city adopted a by-right ADU ordinance which I think opens a great deal of equity-building opportunities in the urban core with new construction of such units on existing residential lots.

Are you planning to house hack a single family or a 2-4 unit? 

@Alex Jacobs the more bedrooms the more potential income.DPA programs though, are usually limited to single unit homes.

I've been reading and learning a lot and decided to get started in this by buying a duplex and living in one unit while renting out the other.

Investment Info:Small multi-family (2-4 units) buy & hold investment.

I understand anything above 4 units will require a commercial loan.

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Investment Info:Large multi-family (5+ units) buy & hold investment.

Hey @Yoel Peyamipour If you are looking at 5+ Unit multifamily, id recommend reonomy or costar which tends to have the best commercial data out of any platform.

Sounds like a whole lot of issues over nothing as someone with 45 units blinds and a few holes are the least of your worries the turn over and vacancy cost to replace a tenant would far exceed some minor miscellaneous cosmetics.