Do not squeeze it into a space that you think is too hard to navigate comfortably but I think you have the appropriate size here. $40k also sounds very inexpensive and likely unpermitted so just be on the lookout for drive-by inspectors and make sure your contractors have proper workers comp. 

You might want to expand your scope to search for SFH+ADU, and live in the ADU portion.

Goal: Build a passive income from rentals that will allow my husband, my daughter, and myself to live on mission for Jesus Christ.

- to me this was another way of saying "I am going to have some of my undocumented employees living here (yes they disclosed some undocumented individuals, however, the potential leaseholder is documented)Someone please talk some sense into me LOL this is my only official applicant as of now.

We live in New Brighton and LOVE it, so actively looking to invest in this area. 

"....I read a book once that told me to do this...." words to live by, and also words to die by.  

I can comfortably put 10% down with at least another 10% in reserves for any updates or furnishings.

Everyone want to live in class A++ neighborhood and sometimes the only way to go there is by buying condo.

Some that were built in the late 70s - early 80s had both large dining areas and living rooms, and one of those spaces could be converted to another bedroom with a strategically placed wall.

I have 2 properties in Florida (live in Maryland) one is a long term rental and the other is a short term rental, both are in our personal names.