But it sounds like they are just positioning themselves in the middle of your 'deal gone bad' to make some money for themselves.  

There are a few programs that can do second position financing but typically underwritten based on your personal income.

Also, if you were in our position, what questions should we be asking the lenders to make sure it is a good fit?

Main goal of All In One heloc or 1st Lien Position Heloc:  Lower your daily average balance.Main Drawback: Rates are substantially higher than 60% of current 1st mortgage balances.If you are mostly living paycheck to paycheck and your money leaves your account as soon as it comes in to pay bills, this is not for you. 

Thank you for your feedback!

If you used a loan to rehab your property and find yourself in a difficult position, doing a straight refi (just paying off the old mortgage) will be easier than trying to pay off the original loan and take additional cash out.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

There is now some positive cash flow (not much considering the value of the asset, but a lot considering where the initial cash flow was).  

Hi Jasmine-Congratulations on being ready to turn your primary residence into a rental.Your question is should you use a property manager or self-manage your property.If there is enough positive cashflow or you can afford to pay a property manager, I always recommend doing so for the following reasons:1.

Does anyone have experience of setting up a STR while in the same position?