Depending on how familiar you are with construction this is a very solid way to go bigger.

There has to be some solid plan for getting a value-add from the investment for a no-money-down scenario to make sense. 

Pick a solid B-Class suburban area.

We are living in the main front house and renting out the ADU to a tenant.My question is, other than having landlord insurance on the ADU, a solid lease agreement, and a 3rd party management company as intermediary to help manage repair needs/requests (my partner and I both work full time jobs) and showings when the unit is vacant, is there any legal entity protection or other avenue that will protect us further in case of a tenant lawsuit? 

Rental income has been solid Lessons learned?

(This one is crucial, a company that has a solid check and balance process is much more likely to maintain quality.)

@Jim Pfeifer that’s a really solid strategy!

I agree, it's a really solid place.

We are projecting a solid 8% pref and over a 15% IRR for our investors in this solid deal.

I would walk through with your Realtor or even just bring a solid contractor with you to the primary walk through.