If your numbers are accurate you should make almost 40k after paying your realtor :)Here are the numbers to back up my argument that this is not a good rental: Mortgage Rate 3.00% Length of Mortgage in years 30 Monthly Mortgage payment $420.55 Taxes $ 133.33 Sewer and Water $ 125.00 Trash $ - Heat/Utilities $ - HOA/Legal $ - Cap Ex and Ops $ 250.00 Insurance $ 100.00 Mgmt Fee $ 110.00 Vacancy $ 91.30 Total Expenses $1,230.18 Unit 1 $ 1,100.00 Unit 2 $ - Unit 3 $ - Unit 4 $ - Unit 5 $ - Unit 6 $ - Total Revenue $ 1,100.00 Cashflow/month $ (130.18) Cashflow/year $ (1,562.20) Cash on Cash Return -4.03%

There are ways of avoiding the due on sale clause (usually by utilizing trusts) but this can differ from loan to loan.

Would you have to cover utilities? 

If the goal is to grow fast and buy a bunch of rentals, it makes sense to sell your primary residence and utilize the equity you have accumulated by funneling it into more rentals.

Most residential sales utilize the Comparative Market Analysis approach- find lessons on that, I'm sure there are some right here on BP too....feel free to reach out for specific inquiries, I'm an open book

My family would move into this house, and potential to have a 3bed basement suite, $1600/month including utilities.

Oftentimes, commercial landlords need to charge utilities, CAM charges, scheduled rent increases, unique late fees, etc.

Last summer 2019 I sold my business with the intention of using the proceeds as a downpayment to buy a much larger cashflowing business, utilizing the SBA 7a program. 

The second is how many units 'could' theoretically be allowed utilizing ADU/density bonus rules?

If I did utilize these people to invest what's your recommended approach to structuring something like that.