Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

I'm not sure I can copy and paste my Excel spreadsheet, so i will approximate the numbers here.Strategy:Take a Home Equity Loan (second) on our primary @ 5%.Pay off existing HELOC (variable, at 7.5% now), use remainder ($120k) to buy the land (plus 30k of our own cash).

We have equity on our SF and we’re thinking of using a HELOC.

To answer your questions here though:Alternative options - I was going to sell all my stocks and etfs, take out a HELOC, and some credit cards to try to shoestring together enough to the deal without a hard money loan. 

A second mortgage or HELOC might allow you to unlock some funds without losing the 3.25% rate.- I recommend avoiding condos. 

I opted to go the HELOC route instead.

We have decent equity in each and the loans were taken out at a great time, 2 of them at less than 4%, 1 was paid off with a HELOC on our primary residence at 2.5% for 15 yrs., 1 was bought with a HELOC on the free and clear home. 

What is a good source for a HELOAN or HELOC in December 2024?                            

If you take the heloc to pay off siblings, I would still offer a big "Cash Now" discount so that they get paid quick.

From what I've heard, local banks are sometimes more flexible than the big guys.A buddy of mine managed to snag a HELOC on his rental property, which isn't always straightforward, but it opened doors for him.