Buy and hold used as short term rental property.

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

Where did you find your property?

Additionally, depreciation deductions on the multifamily property could offset a portion of your rental income, further enhancing returns.Key considerations:- Financing the multifamily: Would you go all-cash or use financing?

Two separate property appraisers (at the direction of the lender) were sent out to appraise, and neither was willing to appraise it as a "residence", and thus financing fell through (conventional primary loan).

Most banks/credit unions have clauses that prohibit borrowed down payment funds or seconds on the property. 

If you do decide to start flipping homes- as a new investor you can either self finance with all cash, or you can contact a commercial lender like myself and expect terms to be 75-80% of the purchase price with 100% of the rehab financed through a draw.

With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

Hello All, I'm looking to do some work on my rental property to add an attached ADU.

I don't think you will find it, but if you do, it'll cost ya.It sounds like an amazing house hack if you can move your life around to make it your primary (and the financing will get MUCH easier).