If it's in a shared space like a basement that's one thing but if it's in an occupied unit, that is something that may not be allowed in your jurisdiction.

If you need cash for remodeling new home do a LOC on your owner occupied house before you rent it. 

Beacon is no longer on the list of viable STR towns since they require a STR to be owner occupied. 

Would you be looking to owner occupy the property or strictly as an investment?

Sell it into an S Corp at market rate, that you are the owner of, taking the tax free gains because you owner occupied it. 

For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy).

Catch is ... it is zoned at RM20-A, which for those of you keeping score at home, is apparently not eligible for a Non owner occupied STR. 

If you're tax bill is $6-8k (minus the 1031 fees), surely you can make that up by taking multiple swings over a longer period of time.OR pursue some sort of owner occupied strategy with that cash if you can swing a live in flip or house hack.

Tenant occupied through Nov. 2023.  

As others have said, this is the best way to get started because you can get much better financing when the property is owner occupied.