I'd agree with @Devin Peterson, best way to get this answered is to get a few quotes from different lenders and compare - either on BP Find a Lender or just googling (also if you post a version of this in the Classifieds subforum - or it might get moved there, you can interact directly with DSCR Lenders here - although this subforum is more about technical questions).

I would probably try to compare it to other remodeled one bedrooms in the area.

Then compare current market value to what it would go for today with an added legal apartment.

Although I don't personally like the trends, they were supported the City of BBL's October Compliance & Occupancy Data, which provided the following:1 - The occupancy rate for October was 38%, which compares to 55% prior year; 2 - Average nightly revenue dropped by 36% on a year-over-year basis; and3 - Demand decreased by 22% on a year-over-year basis, while SUPPLY ALSO INCREASED by 13%!

These areas won't give you cash flow without significant downpayment, but their price/rent ratios are much more friendly compared to other cities in the Bay Area and you can also benefit from their appreciation.Another thing to put on your radar is the Real Estate Professional Status (REPS) election.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

We have to do a calculation to see what your remaining entitlement will be and that will be based on how much your 1st home mortgage balances is as compared to the current Conventional Loan limits in the county that you purchase your second home in.

I would calculate and compare the numbers of, first what the property might cost you to hold onto it versus selling and repurchase at a higher interest rate without a 1031 exchange.

It's logical but will only appraise based on comparable sales and, if it's an area with few STR sales in the past 12 months, it will appraise just like an owner occupied home.

If you believe your property has been overvalued, you can gather evidence (like comparable property values) and appeal the tax amount.