I do not understand your remark as related to the DSCR loan.  2 ADUs are not allowed by f/f conventional financing but is not always enforced.Fortunately if you stay with the current tenant without a refi, by the time you pay principle it is likely the rent will have increased enough to absorb the increase mortgage payment. 

If you need help financing your next investment, I’d be happy to assist.Drago

How did you finance this deal?

@Jacqueline Wright  Every auction is different so the first items to check: do they allow financing if you win the auction? 

In addition, you’ll be included in their newsletters for additional real estate investing resources.The best way to leverage RentRedi benefits is for rent collection:Tenant applications and screeningDocument and field maintenance requestsE-sign leases Tenant communicationRenter’s insuranceAnd for Stessa benefits: Property bookkeeping and accountingPortfolio monitoringProperty analytics to track historical performanceSchedule of Real Estate OwnedLandlord bankingTax prep support 

Quote from @Guillermo Perez: Does anyone have experience with seller finance?

Alternatives include seller financing, a lease option, or using an LLC or trust to structure the deal while maintaining tax benefits.

Financing through an LLC can be tricky due to Fannie Mae and Freddie Mac guidelines.

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

Also, in order to get financing the lender wouldn’t allow SCI to dramatically overpay or they wouldn’t meet the debt service requirements.