The downside, it sounded like, is you'd want to be local and manage it yourself because a pm will take too much 0% out of your cash flow initially.

Initially started as my own home.

as many units as you could get initially, and then learn to manage, and from there you'll have so much opportunity and a great financial foundation.   

Hey Tyler, It probably comes down to a question of initial cost vs on-going cost and maintenance requirements.

This implies that when the ADU eventually starts to cash flow, it will need to recoup from both the initial negative cash flow and the initial negative position from the addition before you make your first profit.  

I am scratching my head between WI licensing law, a tough seller, and a very hard area (somewhat rural) with very little investors looking to fork out around 200-300k as a down payment, (banks will probably want %25 of the initial list cost).Does anyone have any ideas on what I do?

The landlord should have completed and provided to you in writing an initial walkthrough of the unit siting each deficient item.

So the upside is a bit larger initially for a sale versus cash out refi.With refi, payment would come out to roughly $750/mo for mortgage, and estimated rent payment at $1100.PM comes highly recommended, well known to business acquaintances and family.Re: 1031, we already would have someone lined up in TX, if we decided to go that route.  

Initially my goal was to have a loft with an extra bed in the unit to be more attractive for short term renters.

There is a cost to the initial education requirements.