How to finance deals?

[Toby Auer]

Thanks I’m advance for reading, trying to keep this as short as possible.

I just purchased my second home for 280k. I plan to put an ADU in the backyard that will cost me about 120k. Then it should appraise for 500k. With me doing owner occupied I should recoup all of my money (80/20 LTV).

I have 30k left in the bank, I was planning on getting as far as I can with that and then borrowing from my dad. I just learned from my lender that my dad isn't able to just let me borrow the money to finish the ADU. She said borrowing like that is a no no in the lending world. She said it has to be a "gift".

My question is how do I finish the ADU if my dad can't just lend me the money?

I am also looking for the next off market deal from mailing letters and cold calling. I have 3-4 people that are very interested in selling off market. My plan with those is offering 70% of what the house is worth, then going to get a loan for 70% that way I have no money in the deal.

I am currently laid off for another two months or so, so my lender said I won't be able to get a loan due to my DTI.

My question for this is how would I close on these deals? I hear all of the success stories of people buying multiple properties in the same year but I guess financing is my issue (which I thought would be the easy part). Do I need to partner with my dad or someone else that has a better DTI ratio? Thanks in advance for any advice!