I cannot think of a single area in town where there isn't significant demand for rentals.I'm local so if you want some specific advice or help please reach out, I'm happy to help.Unpermitted additions often are not an issue if the construction is done properly. 

I wanted to hear some  pros and cons on doing this and any recommendations for specific budget friendly systems.

More specifically, when you’re on the phone with your potential tenant and you finish your pre-qualifiers, you set up an appointment, THEN you ask them one important question, “will you call me if something comes up and you cant make it?”

"Micro-retail" has been done in some of the more dense places in the country (NYC, SF, etc) but I don't know of any specific examples of exactly what you're describing.

Legal advice needs : LLC jointly owned by three partners / offer docs / county or city specific lease docs. 

You can also use specific language in your lease/ taw agreement to refer to yourself as "landlord" or "Lessor" as well 

I'm not very specific as far as what I want to invest in, I'm pretty open to everything but going after good roi.

This is my first property purchase so I am unsure if there is a specific type of form that is usually filled out or if this can be asked in a less formal way.

You say your attorney says you have a ratified contract....is he aware of this specific thing, you changed the name, intialed and they haven't?

I'd be happy to chat about specific areas that we buy and manage in.