Our lot size is 7300 sq ft and main house is 1700+ sq ft.Location: San Jose, CA- We were thinking to potentially design the ADU such that we could have a wall (or a door) that allows us to separate the ADU into a 1 bed/1bath for self use (or rental) and another part which could be rented separately on AirBnB as needed.

Access to Larger Loan Amounts: Cross collateralization allows borrowers to leverage multiple properties, which can lead to a higher overall loan amount than what might be possible with a single property.2.

It’s a popular way for new investors to dip their toes into real estate because it allows you to generate rental income while reducing or even eliminating your monthly mortgage payment.While house hacking can be done with single-family homes (by renting out rooms), multifamily properties, such as duplexes, triplexes, and fourplexes, take the concept to the next level.

How much higher is vacancy allowance when running numbers?

This strategy allows you to buy one rental annually while maintaining stock market diversification.

Household furniture must be positioned and/or elevated to allow adequate air flow underneath and between furnishings and adjacent walls.

It's something you want to account for in advance since it is technically not allowed.

It's not great either but they are stating if given this deal once I have 5 properties; they will allow me to convert my 5 properties (I have an LLC but the properties are all in my name not in the LLC yet) over to a commercial loan (5 properties min) and give me a line of credit to continue buying additional properties.

This would also allow you to bump up your price point a bit in order to flip in better locations which will have less risk. 

If there is a loan on the property, the lender may not allow the transfer.