Thanks, Nina Yes, we have them put all utilities (including water, if SFH) in their name.

They need to do all their due diligence including understanding the value that will be added by the ADU, the finance options available, the consequences of adding the ADU (rent control, property taxes, rental limitations, etc), etc.Good luck

There's a nexus of factors tied to the LLC lending question worth noting.Typically we use a specific type of private business-purpose note that enables LLC lending.Other benefits of this note include: No Income Verification, No Credit Reporting, LLC Liability and Privacy protection, Unlimited Number of Loans, Far Less Documentation,... many obvious and non-obvious reasons savvy investors run this route.These notes are also competitive with FHA/VA/Conventional interest rates; however a 15-20% minimum down payment is required.Happy to help you cover the bases.

I was told to get a home under contract via the Option to Purchase contract (include a consideration fee given to the seller) and getting all signatures done with a copy given to the seller.

I am planning to include the estimated property value and the funds that will be transferred into the business bank accounts.

The other options you are playing with fire as using a HELOC that is paying interest is essentially buying with 100% financing.Having no skin in the game has always been a high risk strategy and people were able to get away with it the past few years due to the money supply and inflation but I would not use that as the measuring stick. I

Study landlord basics, especially on what to include in your lease (going forward you will ALWAYS have a written lease).(2.5 Learn from mistakes and don't repeat them.)

Currently we have about 135 tenants, not including parents who call/email me whenever they want due to having a bunch of needy, entitled honestly 22ish year olds.   

Financing options include cross-collateralization, cash-out refinance, and DSCR loans.Good luck!

Those are generally at least 1 of the following:1) Where they currently live2) Where they grew up3) Where they currently have family/friends living (if not included in #1 or #2)4) And as a last resort, an area where they like to travel/vacation frequently