These types of properties can still appreciate an exceptional amount if you pick the right area.

There are separate loan products for construction of an ADU (checkout Derek @ThatADUGuy on Instagram) to learn more.

And I also think that the inventory in your market plays a large role in deciding what property type makes the most sense.In my market, there is a large abundance of the small multi-family properties, especially the 2-4 unit properties.

But 1031ing your current land into better production land that you rent out can be a very stable platform.  

Permits are basically only pulled for electrical and plumbing of if they get caught.. its the only way to make the rental houses cash flow in many of those markets.On top of that licened contractors many times simply wont work on those type of properties there is no money in it for them..

What made you interested in investing in this type of deal?

With that said, choosing your bank based on customer service relationships and business credit products should be a priority. if you’re looking for a bank that offers great service and lower wire fees, I’d suggest starting with NFCU.

What made you interested in investing in this type of deal?

This would also prevent me from using the HELOC for a different type of investment like BRRRR or fix and flip.

(should have documented, dates may not be exact) What made you interested in investing in this type of deal?