Landlord Tenant laws are challenging but if you invest in the better neighborhoods, you are less likely to run into the issues landlords customarily face in the low income areas of the city.

You need to know the NOI so ask the seller for the income and expenses for the last few years.

Now 75% of legal ADU rent can count toward income to loan. 

Adding that extra unit will reduce your risk since you are adding another income stream to a property you already own.

Goal is to replace W2 income, initially. 

A no income no doc DSCR (debt service coverage ratio) would be a great option for you .

I'm financially stable with good income, low debt, and good credit score. 

@Tony Manning depending on the county there are programs to help with the costs, but requires tenant income restrictions.

Hey Bryan, A lot really plays into the valuation and listing prices for properties: bed/bath count plays into it for sure, but also appraised condition, neighborhood location, neighborhood class, expected rental income, etc. 

I recommend you do this annually to adjust for utility increases and other variables.