Versus with the cash out refinance you start paying on the debt from day one and haven't found your new investment yet...That'll just eat away at your positive cash flow way too early.Also, try to optimize your operations in the asset you're leveraging the equity on as much as possible before pulling the trigger.

Set your limits at say $5,000 versus $20,000.  

If you’re lucky, you will find one that has a lot of Realtor/investors to learn from.Ask around and good luck!

It is in the area that has decent short-term rental rates based on airdna and what property managers are seeing.How much more in maintenance have you all noticed on a short-term rental versus a long-term rental?

I'd recommend looking at costs. your build cost is going to be well over other homes because of the fixed costs like slab, Hvac, roof, etc. check the market drivers and weight the benefits of short term versus long term. long term is no furniture and help pays mortgage but at this size it doesn't really cover everything. we didn't find a lot of economies of scale in single family detached. can you build more than one unit?

DSCR versus conventional for example.

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

That will cut your cost by 1/3 versus retail.  

Welcome aboard and good luck investing!

Good luck!