Converting one unit to a short-term rental.

You cannot convert a preexisting property into a OZ and the new owners cannot have any sort of familial relationship with you - for obvious deception loop holes.

These units he claims have been Condo converted.

If you can convert some of the over sized units to a number of smaller units (ie- a 10 x 40 to four 10 x 10's) you will increase rent per square foot considerably. 

Convert garage or carport.

The borrowers qualifying income converted to annual income must not exceed 100% of the Area Median Income for the location of the subject property.

@Adam Apalategui The previous owners have converted it into a duplex so they paid the price already

Would consider AirBnB on the weeks I’m not there to help cover mortgage and then probably convert to long term rental once contract ends.

I bought my first college rental last May, its been rented ever since, had to pay all cash, no bank would lend to me, all said my debt to income ratio was too high, so I made the LLC, and bought house in name of LLC, was told wait 1 year and then refinance, 1 yr later, I need to refi, I want to purchase another 1-2 properties, lenders will not lend to my LLC, they want me to convert back to my personal name, one said will lend to LLC @ 8%, and points, but paying 7-9% for the refi seems high, I am quoted 5-6% if I put property in my personal name. 

They're separately metered and both legal, but according to zoning laws (section 12.23) it's not clear that the residential unit can be "added to or enlarged" so I'm looking at converting it to a legal ADU as well.