Remember, you provide housing not personal reform. 

After it's stabilized looking like $28-30K annual cash flow, probably $72 per unit with a 4.3% cash on cash return.....assumptions using market standard opex since you didn't provide that but did you underwrite this one? 

A knowledgeable VA lender can provide guidance tailored to your unique circumstances.

This means providing top-notch customer service, keeping the place clean and comfortable, and adding thoughtful little extras.

This will allow you to obtain cash to put towards a downpayment.

Tons of rating factors that impact the price from one property to another.I say this without even considering coverage, service, and what you might want as there are usually choices to be made.Your best bet is to work with an independent agent that can provide advice along with multiple options for every scenario so that you can find the best value in each situation.

While using a QCD may encourage the Clerk to accept the deed for recording it won't help if the DOR decides to audit the information provided with the conveyance. 

A local RE professional should be able to provide this information to you as well.In New York, we deal with this scenario frequently and oftentimes it does not make sense to legalize ADUs because the permit process is extremely lengthy, the cost is high (sometimes $150-300K for 1 ADU unit), and the potential increase in property valuable is not worth the risk.If you already have an approved permit/plan and can get your renovation down to $80K, you may want to consider this project if the ARV is say north of $800K.** You should also look into any potential property tax increases associated with this change.

Like others have mentioned turnkey is a great option, there are several providers that operate east and north of you where the price points/rents are more favorable while laws remain landlord friendly.

May states ca provide a good return/cash flow on a purchase price of $175K to $300K.