Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive.

I can check in with my local bank, but I don't want to waste their time when I'm not yet serious about doing a loan with them.   

@David OhCreating a profit-sharing program is a great way to align employee goals with the company’s success, but it’s crucial to design it carefully.

if they are pressuring you like this.PLEASE watch the American Greed Episode on Remmington Financial  .not saying these guys wont or don't fund of course.. but when I do my deals with my banks its common that I pay for the phase one and the appraiser directly..  

The main issue is that to do the ADU you have to spend so much bringing other items up to code like electrical, plumbing, lighting (windows) and egress.

I would do more deals with the family members as opposed to others.

I recommend not doing what your are proposing.  

You'd be surprised how much damage they could do.

As Michael mentioned you just need to respond to the IRS and state this is what you're doing.

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?