Is that something they’ll do prior to looking at any potential deals under contract?

That’s why you get a discounted interest rate and a lower downpayment, because owne occupant properties are low risk. 

I guess my challenge right now is to define the strategy and balance all the factors, such as job and population growth (value increase), cashflow (demand & supply market, interest rate, property tax, maintenance cost), and risk control (insurance etc). 

Expanding to 3/2 + an ADU is a smart move for forced appreciation and rental income potential, especially with 4% annual growth baked in.The construction-to-perm loan sounds like a great fit for managing costs and timelines, especially with LA’s high price points outpacing FHA/VA limits.

I would love to find something that is has value add potential but not looking to full rehab.

After reading about the ongoing litigation against Versity/Crew, I have suspicions of potential fraud.

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

By buying mortgages, Fannie and Freddie reduce risk for lenders.

But any improvements are at your risk.. the redeeming party just owes you your cash plus in our state 9% and any VERIFIABLE expenses you paid to protect the asset.

For a variety of reasons, including keeping this potential project "need-to-know" only right now, I want to get a ballpark estimate with full understanding that the goal posts could move in either direction as the project gets more discrete.