That use to be recommended because not too many people showed up but now they do making competition greater in quantity.  

This is the least desirable for me because it is in the least desirous area and on a tiny lot.

It will need a new roof, electricity brought up to code, hooked up to water and sewer, insulated, and heated.2) Turn the attic of the house into a 3rd bedroom with a bathroom (around 200 sq ft of usable space) and possibly a new staircase that isn't so steep and maybe with a separate entrance from the main house, if possible.3) Build a tiny/small home in the backyard (300 sq ft or less) and rent that out as a STR, but it would also need to be built to code and hooked up to water and sewer.Once I'm making a profit of some sort, depending on which option I go with, I'd like to start fixing up the main house.

The low down payment is great, but if you don't cash flow your COC return will be tiny.

I don't know the rules once you are no longer employed with a company but I know 401k plans often do allow loans and variable terms for payback.I think there is a quantity and total limit - like you can only take out 1 $50,000 loan at a time from your plan, maybe over the course of a year.Checkbook IRAs are a thing - but keep in mind all the profits must remain within your retirement account.Personally, with such a low cashflow number, I don't think I'd take a loan or the tax hit.

The tiny cape (a 2/1) behind my home sold for $260k cash this spring and couldn't rent for more than $1,500.

My husband is employed full time and does well, and I am a stay at home mom with a tiny part time income.  

My tiny house project was sold to an investor and they are used as rentals.

I even heard recently that a "tiny-home" community was being planned for the area to alleviate the lack of housing available now that the block ghetto-like neighborhoods are gone, which would certainly be an improvement over what was there.  

Just had my entire HVAC replaced with "oversized" Bryant unit and new ducts in my own home in CA....all for $6500....and my house is 2500 sq ft.....My Texas house needed a new HVAC when I bough it, and that cost my $7000, and that's 2200 sq ft....You place is tiny...... that price is WAY high.....