But you need to put 3x the effort into the attraction side, because that’s what creates a high-quality applicant pool in the first place.Here’s how I think about it, operator-style, using the 4 P’s.1) Better PropertyNot just presentation.

I know my clients like speed and certainty along with limited to no red tape long application process's that get turned over to an underwriter that keeps pinging for more info. 

Would you suggest he should he spend four years at a college with the slim chance that might turn into working a company job, competing with H1B applicants for employment, to eventually 20 years later of saving to maybe flip burgers at his own establishment in competition with Mcdonalds? 

Some of these are likely not applicable in Houston.1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Depending on the structure and your participation, repairs and maintenance, property management, and professional fees, mortgage interest and points, utilities, insurance, and property taxes, travel, mileage, and home office (when applicable), depreciation, and potentially accelerated depreciation through cost segregation could play a role in your tax situation.If you want a lower-risk way to start, options like a live-in renovation, a small rental, or even upgrading and renting out your current primary (if you didn't already take out the HELOC) could work with better tax treatment and less pressure.Good luck and happy to connect!

Lots of government funded applicants.  

Bonus density, advantages of located near transit centers, recognize unit separation laws and path of progress regarding these (I expect to make a lot of money (at least 7 digits)  on this in the next couple/few years effortlessly).

Being transparent is the name of the game, as it can avoid underwriting issues down the road.For DSCR scenario in particular, lenders would look for the below data points to confirm property adheres to seasoning requirements (usually 90 days) as well as debt service ratioBorrower NameBorrower FICO ScoreProperty Address# of UnitsPurchase PricePurchase DateEstimated As-Is ValueAnnual TaxesAnnual InsuranceAnnual HOA (If applicable)Current Rent per unitMarket Rent per unitLoan Amount RequestExisting Mortgage/Lien PayoffsAny pricing guidance that the client has in particular (Prepayment Request, Fully Amortizing vs I/O, Interest Rate request)

Realistically, for 2-4 units right now, the cash flow "sweet spot" is in neighborhoods like Linden or the South Side where the path of progress is moving, because straight long-term rentals in A-class areas are a tight squeeze without a solid value-add strategy.

We show houses to potential tenants, screen applications, run background checks, arrange for repairs, do evictions, etc.