Some people pull a HELOC on there current property to do it, but it's like robbing Peter to pay Paul. 

They can guide you on tax advantages, asset protection, and multi-state strategies.A HELOC is a smart way to leverage your equity—ensure your financing structure aligns with your long-term goals.Since you plan to add multiple properties annually, consider setting up bookkeeping and financial tracking systems early to streamline your operations.Best of luck with your BRRRR journey—it sounds like you’re off to a strong start!

Since HELOCs have a variable rate, you’re banking on rates staying the same or decreasing.

I recently took out a Heloc on my primary home to do a repair and consolidate some debt.

1031 exchange from a sale of a rental property plus HELOC to fund the remaining.

I know this might seem insignificant to experienced investors, but I just got the appraisal back from the bank this week and have access to about $145K in a HELOC so I'm creating CCCs around this number. 

If you use a HELOC you will have a sizable monthly interest payment.

Also have a great bank that will provide HELOCs on multiple rentals.

Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

Another option is to explore private lenders or HELOCs to cover the equity.