Mark,Jordan is correct in his analysis but the problem lies in managing not to get thrown out of the seller's living room when you offer him $97,200 for his park. 

I am also sure there are some other people on BP that can help with more out-of-state investing.This is all VERY GENERAL information and will vary depending on where you live.

I have 12-doors in Detroit but live in California. 

Why are you calculating the monthly rent from the ADU if you will live in it for your own use? 

I actually had to get enough units where I could offer tenants multiple housing options when I purchased properties rented at way under market rates and then (an embarassing number of times) personally watch tenants that would "suffer" from a rent increase turn down smaller (but nicer places) or  nicer places in a less prestigious zip code (sometimes only minutes away) before I realized that I was hampering my ability to earn a living in order to subsidize the lifestyle choices made by a some random stranger that happened to live in a property I bought.

I live in Redlands and invest primarily in San Bernardino.

I was born and raised in Bryan but live in Austin now, however, my wife and I focus on investing in the BCS area. 

I'm looking for $4,000,000 to convert a go kart tract into an assisted living center

Hi Erin - solid rental area (I live in a neighboring town). 

Its considered a primary residence if you lived there 2 of the last 5 years.