Hopefully you bought the property so that even with appreciation you should be able refi and repay your lender.

Are there favorable regulations in one area or another that will let you do something unique?

But there are some unique challenges that you have to be willing to work around, as it is not as straight forward as renting out a duplex.I don't know that townhomes are the most common SFH with basements.  

You gotta put RJ on an episode - especially for those investors who dable in GC side of thingsI don't invest in the DC area but if you are looking for a unique investment stories in the West or Southwest down the road-you know how to find me. 

I have solid money management skills, and have a six-figure career so I'm highly confident in my ability to repay the credit card debt (if incurred).

I'd much rather have a building in LA appreciating over time than a building in, say, Tennessee spitting off $300/month while barely appreciating.When I run numbers, I break down my expenses as follows:Taxes: 1.27% of purchase priceProperty Management: 5% of gross rentsMaintenance & Repairs: 5-10% depending on the condition of the buildingCapEx Reserves: 0-5% depending on the condition of the building and renovation planInsurance: I get an actual quote online from my provider, takes 10 mins, or just assume $3000/yearUtilities (water): $60/unit/monthServices (lawncare, pest control): $100/monthThese should be tweaked further if there's a unique circumstance, like individually metered water (rare) or no grass (not as rare).Add principal and interest, and my target is a 2% cash-on-cash at current, below-market rents.

When you have a house with an ADU and there are no comps in the area that also have an ADU, what you have in the appraisers mind is a unique SFH with what could be considered an over-improvement for the area no different from say, a $200,000 fancy swimming pool.

Being a landlord in San Francisco always requires a "unique mindset".

This prohibition does not apply to a landlord, property owner, or property manager who demonstrates by a preponderance of the evidence to a court that the resident was offered, and refused or failed to comply with, a re-payment plan that was reasonable based on the individual financial, health, and other circumstances of that resident; failure to provide a reasonable repayment plan shall be a defense to any lawsuit or other attempts to collect.

Many are at risk or terribly underfunded, mostly in the public/Govt sector where politicians have rerouted funds to other programs with promises of repayment that haven't materialized.