It's not that I have zero cash, just not enough on hand to close the deal on my own.Purchase Price: $275kRehab Cost EST: $130-$150kARV: $550k-575kLake Front house w/dock (a huge incentive on this lake)I have a little over $30k available but don't want to drop much lower but also hate to miss out on this opportunity.  

I also suspect inflation will drive continued migration to lower cost of living / lower tax states.  

Banks and credit unions might have lower-cost options, but they'll likely require more equity.

In my market the valuation with f/f non commercial financing is typically lower than the hands off cost of adding the ADU.  

Conventional financing is a great place to start as the interest rates will be lower. 

Also HELOC's typically have lower interest rates than personal loans since it is secured by your home.

The rates might be slightly higher than conventional financing, but it will still be slightly lower than a DSCR loan. 

Holding costs should be lower than using all of HELOC. 50k won’t cut most purchase prices, so have to use some of HELOC too. 

My goal is to diversify with an investment that generates steady cash flow, even if it requires a larger upfront investment and lower overall returns. 

@Mickey Petersen I would 1031 exchange into a larger better cash flowing property or whatever gives you a leg up on your wealth building.