Or when I lived in Palo Alto same thing  East palo alto schools and values were 1/3  all in the same area and same size homes. 

The homes are reasonably priced for the size and bones, allowing investors to customize homes with renovation or interior design prior to being able to attract guests at the right price.

However it could be location,  Common area, size, laundry, tenant qualifications (in rough areas you are not going to get many tenants with unblemished credit), parking, look of surrounding properties, etc.   

What are the lot sizes?

No formula can be accurate across the board because even “cookie cutter” properties next store to each other differ as to view, location to the street, topography of the land, lot size, physical condition of the property, past remodeling, quality of the mechanical systems, sunlight, utility bills, past use, etc.  

Depending on loan size and what the DSCR ratio is, I have a lender that would be 6.88 to 6.99% with no points with a 680+ credit score and 20% down. 

Furnished mid and short term rentals will cash flow if managed correctly and you find the right location and property size. 

Unless the place in an amazing location that couldn't support a full size home, you are better off doing a regular place.A tiny home isn't considered real property.

It's not that big of a problem if the zoning allows for 3 units on a property of that size, however in most cases like this the conversion would have been done illegally or at the very least is no longer a conforming use.The shared water meter is pretty typical for multifamily here in Tampa.

Provide four to five copies of drawings size 24"x 36" and 11 each Site Plan/ Boundary Survey.