I already have an investment analysis workbook built that tells me everything I need to know to make a purchase decision, NOI, COC, ROI, and if the property will achieve the appropriate coverage ratio to be funded. 

I just bought a $400k STR and the break even point with 25% down is $54k with a 2% sinking fund and 3% maintenance built in. 

I'm not factoring this in right now, going based on the numbers I see.Definitely able to put down additional funds to be creative with a lender, at the numbers you are thinking. 

I am currently working on phase 2; building 2 ADUs.The permits are already in the works but the biggest question is what is the best approach when funding these 2 ADUs BEFORE I have the equity from my home?

Hey Laura,So I can't help with the true GAP funding, but I might have some ideas on how I could help utilizing the seller financing and transitioning it to something long term. 

The advantage with the bank was minimal closing costs, a good interest rate, and a draw system so I could get funding as I completed each rental unit. 

Depending on how it is done and what guarantees the government offers and requires of the released entities, interest rates could move slightly higher.

Quote from @Guillermo Perez: Can someone please let me know if this is ok for my first BRRRR.I got a $200k HELOC on my primary residence to help fund my first BRRRR.

Currently we would be at 8.5% interest rate.  

Here are the key details of my situation:Rental Property Details (Note: This was our primary home till 2017):Current Value: $970,000 to $1MPrimary Mortgage Loan Balance: $505,000 (@ 2.6%)Took Home Equity Loan on this house to make down payment for my current primary residence.Home Equity Loan Balance: $123,000Total Loan Balance: $628K (Primary Mortgage + Home Equity Loan)Rental Status: OccupiedPrimary Residence:Purchased in 2022Mortgage Rate: 7.3%Current Loan Balance: $650KMy goal for 2025 is 2 fold: #1.