Also, have you made any significant alterations to the property or if it were put on the market today, would it be indistinguishable from a standard 4-bedoom house (are there any extra walls for the SRO, constructed locks/barriers etc.)If its a standard SFR and the leases are very short term - there is a path that you could refinance this with a DSCR as basically a Short Term Rental and then potentially change strategic course back to SRO if needed at a later date

Let your STR start making money before adding cost in replacing the flooring.  

This is only one of the challenges of adding ADUs.   

If all you are doing is asking AI how to respond to someone, you are not adding any value.

Anyone with a little extra money on their hands with the intent of buying real estate may be considered a legitimate lead.

A lot of times when you make a bedroom out of a room, but your square footage is the same, you don't end up adding much to the home.

I am adding content to my next add to explain that I offer the unit to qualified applicants based on the application time date/stamp.

Also, there's the added risk of being compliant with federal regulations & state laws as well as properly assessing/vetting both the borrower and the property.

The negative equity position is one reason (there are many reasons) why adding an ADU is one of the worse RE investments.  

The added Prepayment Penalty, makes the loan technically more expensive than a traditional conventional refinance if you decide to refinance in 1-5 years.