The nice part if you have some cash to work with, and if you're open to out of state, I would just start looking at your top cities you WANT to move too and decide which of those top cities you can get a multifamily for the budget you stated. 

New underwriting at the same rents as the other apartments and assuming a 85% occupancy, and budgeting $300 per unit per year for CAPEX, my new cash on cash is 9%.

I realize that might be a little low but I would figure in a rehab budget for up front costs if I did purchase it. 

Also you have budgeted 0$ for repair costs, which is almost never the case.

Estimated monthly mortage/insurance/tax + loan payment would hover around $3500, not including utilities.Since we have lived in 3 ADU's in the past as tenants, we've accurately estimated that our proposed 1 bed 1 bath with fenced-off yard and pergola, ADU could rent for $1700/mo easily, with the tenant paying their own utilities.Our budget is no more than $475K, including money earmarked to repair main house (because honestly, we won't be getting anything pretty in San Fernando Valley at this price range) and construction loan for the ADU. 

One of the best ways for you to go is to buy about 30 units of apartments where you can budget for a Property Management Company and only have to manage a Property Management Company that takes care of the daily operations. 

But, if that's what the budget calls for, then do it until it works.

To answer your questions in order:1) - I've not dealt with this as a REI but I do in my profession all the time (I'm in architecture).2) - Splitting lots can be time consuming and expensive (relative to your budget that is).

You need to specify your requirements, budget, cap rate.

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