HELOC for ADU exit strategy

[Michael Ramos]

I am in the beginning stages of my first investment property. I am currently going through the planning of a garage conversion ADU. I live in the primary residence which is a 2 bedroom 1 bath 1000sqft. I have a HELOC in place for 45k along with some cash saved up to covert the garage into a 1 bedroom one bath ADU at just over 400sqft. Expecting 1200-1500/ month for the ADU and house hack. Current mortgage is 2,400.

My plan is to reappraise once ADU is complete and refi into a fixed rate to get out of HELOC. After doing some more reading I have seen people post about not getting much added value from ADU's due to lack of comps. I am looking for alternative exit strategies for HELOC. Thanks.