For Labeling it a “smoke lounge” there will be a ton of obstacles that would cost a pretty penny and bring a ton of regulations with it. 

I currently have a primary that I started house hacking by converting the detached garage into a 700sqft 1b/1b unit that I rent to travel nurses, $2,500 a month.

Granny flat has separate driveway and is fully detached.

. $75,000, just over 1000sq/ft, 4300sq/ft lot, 2/2 (would reno to a 3/2) detached garage in downtown Allen Park. 

Once the words 'cash-out' enter the refi purpose, costs and obstacles rise as well.

The encouraging news is that Burbank and Glendale feature some large 2-4 unit properties with one of the larger units often featuring a  2-3 bedroom unit (often detached SFR).

No major fixes: roof is solid, basement is fine, detached garage may need vinyl siding soon.

I did a lot  of other Out-of-State deals in IN, IL and GA, site unseen... important is that numbers work, being solid, team, knowledge and always go through any obstacles that you will have., there is always a solution .  

The biggest obstacle is that it has two mortgages at $105,038, and the average sale of houses range from $102 - $120k.

However, my primary obstacle right now  is lack of capital.