Lending Options for California ADU Build

[Juan Ayala]

Hi BP Fam,

I am looking for ideas on financing an accessory dwelling unit built on my primary residence. I need to borrow $110k, and the ARV $815k with a current value of $715k. The mortgage is $643k with a 2.6% interest rate with no other note on the property. Looking for a lender that would take the second position and use the ARV. It would be a bonus if they counted the $1800 projected rental income. I have an investment home where we built another ADU and just started an LLC. I was thinking maybe a business line of credit, but the LLC is only a few months old, and I've had this rental property since 2017. I also have equity on my investment property but its been difficult trying to find lenders who do seconds on an investment property. The investment home is worth $800k, and I owe $447k on it with the note at a 2.9% interest. Thanks BP fam!