Most out-of-state syndications or hedge funds wouldn’t typically consider the cities you mentioned.

Aiming to maximize cashflow to fund future investments, but as newly weds rent by the room doesn't feel practical right now. 

If not, we have several lenders that can help fund an ADU.

If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

Home prices always reflect how desirable a neighborhood is. 

The client can always use their own funds to replace debt. 

We all invest in real estate in order to make money, and keep in mind that someone who can only afford to live in a mobile home and seller-finance to buy the land is probably tight on funds. 

I'd be willing to bet buying an index fund would have a better return without any of the headaches. 

Start small, build a reserve fund, and work with local experts to ensure your first investment is a solid one.Good luck!