I’ve had no significant issues with three unpermitted ADUs getting appraised and financed.

Sufficient income, DTI ratios, credit score, downpayment.  

And, depending on the effective tax rate of the investor, the after-tax return on cash flow is almost always to some degree even lower.The simple fact is that larger multi-family properties (apartment buildings), mixed-use properties and retail buildings sell/trade at capitalization rates that offer investors’ greater yield assuming sufficient capital is available for investment.

We have a bunch of renovations planned for it, that will take up to three months.

Because I work for a GC, I relocate every year or two, three if I am on very large project.

I would recommend offering the tenant three options.

In my market we have three major home improvement chains, Lowe's, Home Depot and Menards.

The attorney general may find a bond unacceptable based only upon reasonable criteria relating to the sufficiency of the bond, and shall notify the landlord in writing of his reasons for the unacceptability of the bond

Will this be a sufficient explanation that will likely allow my loan to be approved? 

@Sid SriramYou can utilize the FHA loan 3.5% down for a duplex, but a triplex or fourplex will have to pass what is called the "self sufficiency test." which means that 75% of market rental income needs to cover your loan payments (which include payment, interest, taxes, insurance and mortgage insurance) so it is extremely difficult to find 3-4 unit deals that pass the self sufficiency test in San Diego County so a duplex (or duplex with an ADU or SFR with ADU) will be your main options.