If it is too loose, you may be accepting a substandard tenant.

When you have assets that looses value, like a new car, boat ect, and you finance the purchase, you find yourself with never ending debt payments. 

Some towns may require 1 acre per structure but tiny homes are often viewed more in the same category (or zoning use) as a mobile home than they are a single family residence structure, where the density requirements are a bit more loose.

If you are doing it alone, you will probably loose your shirt. 

Many contractors will give bids that are very low with either 1. the expectation that they will make up for it with change orders or 2. because they don't really know their costs and they will stop showing up once they realize they are going to loose money based on the quote they originally delivered. 

Hey guys,I have a friend of a friend who is desperate because he's about to lose his property because of unpaid taxes (2yrs of unpaid taxes, Texas). I would like to help him and maybe invest my cash in creating a note...

   ( now you may think, I dont want to leave money on the table  if I can do my own marketing)    My suggestion is to leverage from others first , you might be loosing more by trying to figure out than just pay an assignment fee.. 

First it was the kitchen which looses electricity then the bedroom and the list go on....

Reason I haven’t, agreeing with you over the terrible headache of going though a mortgage process, stips, and risking easily loosing a flip home when someone has funding ready to go.

The cleaners are going non stop, they do not have time to go and check every door knob to see if it is loose, every cabinet knob, to basically go over every nook and cranny of your place.