Also adding, I have spoken to my parents and they are all in for being creative with our arrangement.

So, whatever you both decide works, make the agreement on that arrangement.

At least at the court steps... not sure how that will work with online auctions via Xome or Auction.com.It sounds like I may need to capture this funding arrangement under a different instrument.

By extension, other California tenants living in municipalities that have rent control laws are likely protected to the extent the landlord was relying on the same Costa-Hawkins exception as the landlord in Owens and operating under a similar leasing arrangement.

@Jesse LeBlanc, I still don't see what the point of any arrangement the seller/borrower and the lender had was.The only thing I can GUESS is that by overpaying the lender grossly, they will receive that residual money after January 1st and be able to book the profits in a different tax year.

Looking for someone with information about tiny home living and if it’s possible to create a “recreation vehicle” type of arrangement for tiny homes.

They can also help navigate any IRS regulations related to co-ownership and rental arrangements with family members.Investing in specialized tax advice can help ensure you’re fully compliant and making the most of any available tax benefits.Hope this helps! 

I am new, like pre-school new, to real estate investing and am confused about where to even start. 

@Jesse Dominguez-Castelan You should also explore one of the quickest options to this situation - reach out to the seller financing provider and see if he'll extend the balloon a few more years.I did this in the past when my 5 year balloon was about up, it was a simple email checking if he was happy with the arrangement and would extend an additional 3 years. 

Eventually we plan to rent the ADU for Medium or Long Term rental, and not sure if DSCR loan will qualify for such an arrangement.