Hard money then refi residential 30 yr How did you add value to the deal?

For example, if the lender uses an 80% LTV on the loan, but the DSCR is 1.10x (and their minimum is 1.20x), then they will reduce the loan amount until they get the DSCR to 1.20x.

So if you can get it paid for then why not 

If it costs $100,000 to install an ADU and it rents for $1,000 a month, then it may be worth it.

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

If it checks out then the numbers seem good.

You can then tell the vacated tenant their their deposit was used to cover missed rent.

Tenants will set up insurance, show you proof, then cancel their policy right after moving in.

If your goal is financial independence, then selecting an investment city is a straightforward process due to the income requirements for financial independence.

Then it sounds like you have your mind made up then right?