However, two oversights have affected my calculations: (Both dumb mistakes I can only blame myself for)Higher-than-expected property taxes and municipal fees in University Heights compared to Cleveland proper.Overly optimistic rental income estimates.After adjusting for these factors, including property management costs and other expenses, the revised cash-on-cash return is about $12,000 annually, slightly over 5%.

Condos have a lower entry point, but once you factor in condo fees, your costs may not be that much different.  

Consulting with both a real estate attorney and a licensed architect is crucial.The attorney can advise on the legal aspects of converting a cellar into a legal apartment, including zoning regulations, building codes, and the legalization process.The architect can assess the physical space, determine if it meets conversion requirements (ceiling height, egress, etc.), and create plans for a compliant renovation.The 2019 pilot program you mentioned wasn't permanent, and the high costs associated with it discouraged participation.

Between your standard W2 . employment income and the rental income generated - those would be the deciding factors between a traditional cash out and a DSCR loan.

Side question, does square footage calculation on mixed use property for FHA factor in the area of an attached garage?

Also, due to KC mayor creating this ordinance, which to highlight and summarize includes:bans discrimination against tenants based solely on:"-Source of income from an occupation, including gig work or paying rent in cash-Use of public programs like Section 8 Housing Choice Vouchers, disability checks, or social security-Poor credit score-Prior evictions and alleged damages older than 12 months (less than 12 months can be a basis for denial)-Prior convictions or arrests (sexual and violent crimes are excepted, a landlord can still deny based on these convictions)-The ordinance also requires the city to proactively scan for rental ads using discriminatory language like “no Section 8” or “no past evictions”.

However, he did not include a listing cancellation form or a release. so I replied to his email, copying the head office to it, asking if he is going to send me an official listing cancellation and no one has replied to my message. 

When you rent, maintenance/cap ex, insurance, pm, vacancy, misc are included in the rent. 

included my final terms from my lender I had been working with the last few months.

First week of setup included laying down gravel for additional parking, making living room into 2 bedrooms, converting large pantry/laundry into a bedroom, and splitting primary bedroom into 2 rooms.