Fannie Mae HomeStryle renovation loans required only 15% downpayment and it includes the renovation costs, plus the rental income is used for qualification, your current income only needs to cover your current expenses 

I came across this situation recently when applying for a Fannie Mae Loan.  

@Lee Carter  If your loan is made through a Fannie Mae program, they issued a new rule last year that you could transfer property to an LLC without triggering the due on sale clause.https://www.fanniemae.com/content/guide/servicing/...You can also finance property through an LLC and find 20-30 year fixed rates, but it won't be "conventional" financing at the most competitive rates. 

However, you don't have to deal with adjustable rates (huge PRO for me- peace of mind), and they aren't bound by Fannie Mae rules, because they are portfolio lending (so you can get as many rentals as you want-100,200,etc). 

Hello,I bought my first duplex using a conforming loan bought by Fannie Mae.

Make sure you buy in a condo that is fannie mae approved, that guarantees an exit strategy, and a increased chance of appreciation.

Some of the options I see are Freddie Mac's Home Possible loan, Fannie Mae's Home Ready loan, or go through a local lender for a Portfolio loan.  

It can be found on Fannie Mae website. 1.

@Desmond Dunn As long as they meet the income and liabilities ratio of Fannie Mae guidelines any lender would work with them.  2 years self-employment income is standard requirement. 

Here is how Fannie Mae looks at ADU's.