.• On any lot with an existing single-family dwelling unit, where regardless of zoning, the lot has any of the following General Plan Land Use/Transportation designations:- Residential Neighborhood- Mixed-Use Neighborhood- Urban Village or Urban Residential- Transit Residential or Rural Residential- Downtown- Mixed-Use Commercial• On two-family (duplex) lots and on multifamily properties• In a low-density cluster development if it conforms to development standards of the R-1 zoning district, and the development and use standards of the low-density cluster permit.Minimum Lot Size3,000 square feetNo minimum lot sizeMinimum Setbacks from Rear and Side Property Lines0 feet for 1-story conversions and new construction.5 feet for second-story ADUs constructed above a garage or accessory structure.0 feet for 1-story conversions and new construction.4 feet for second-story ADUs constructed above a garage or accessory structure4 feet minimum rear and side setbacks required for detached ADU in multifamily developments.Maximum HeightFor detached ADUs:Single story – 18 feet maximumSecond story – 24 feet maximumAttached ADUs are subject to the height limits of the main home.Single-family properties - No change in height requirements.Multifamily properties - 16 feet maximum height for detached ADUs.Rear Yard CoverageArea covered by the ADU, accessory buildings, and accessory structures, except pools, shall not exceed forty percent (40%) of the rear yard.Area covered shall not exceed forty percent (40%) of the rear yard or up to 800 square feet, whichever is greater.Detached ADU Allowed LocationsRear yard only, at least 6 feet away from primary dwelling.May be attached to a detached garage or other existing accessory structure.Must meet minimum setbacks for an accessory building in accordance with Section 20.30.500.No changes except that ADUs that exceed forty percent (40%) of the rear yard must maintain minimum 4 foot side and rear setbacks.

Generally the area has a lot of low income population, some crime, but seems rents are low and tenants are paying. 

This is a mechanism used to make sure general partners are aligned with the limited partners, but are not a good indicator of your true return, so I wouldn't put too much weight on this.

If that is the case, then mortgage interest on a note is passive and not subject to UBIT.UBIT applies when a tax-exempt entity engages in a trade or business on a regular or repeated basis.Passive income not subject to UBIT includes royalties, dividends, interest, rent from real property and gains on the sale of an asset that has been held to produce such passive income.Trade or business subject to UBIT generally consists of services or buy/sell transactions. 

If im correct about the general concept of how it works, then wouldnt that be the same as renting or lease to owning the property??

I’m wondering what type of information I should prepare to present to this person as well as general tips for approaching a private investor.

I'm using the typical general equation: ARV x .70 -  repair costs = purchase price.I understand the markets are super red hot now however. 

Again this is just general though as every market has it's own quirks. 

I am about to start a secondary career as a RE Agent which will get me a lot of exposure in my local market and a lot of experience in RE in general. 

Although, we have a general contract for any work, neither of us signs it - I pay him as the work progresses.