Shared housing provides affordable, flexible rental options for young professionals, remote workers, and students.As shown above, co-living properties have more demand than traditional two-bedroom units and appeal to a wider tenant base.2.

@Cole Starin sometimes it makes sense to sell the WORST property in your portfolio.Another option is why do a LOC on the duplex, when you could just do a $100k cashout refi to pay off all your debt AND keep the property?

Personally, I wouldn't offer SubTo or a Wrap, For reasons I've written about fairly extensively. https://www.biggerpockets.com/forums/70/topics/1227199-the-m...However, I would sell on "Lease Option" and that may work for you.

Are you actually building the ADU or contracting out? 

Also, research other areas where you can invest as a private money lender (fix and flip is just one option)... 

The first thing I ask is why am I Buying the property.I always look at the exit strategy first, is it going to be a rental, a lease option sell, am I planning on living in it.

It’s worth reaching out to your local tax office to explore options.

(And I know a wrap probably isn't the first option many would choose, but I'm in Texas so its really my only option)

The six month cd isn’t the point my understanding is that I can’t just take out the HELOC, I need to actually use the money for my plan to work and a short term CD seemed safe and reasonable 

There is 3-5% down payment options you can use.