Personally I'm working on a very exciting niche, but will take some time to pull together; and I'll give you more details as it moves ahead. 

For your second question-either refinance it (you say it is mortgage free, so get a mortgage and pull out that money) or try a home equity line of credit (may not work as it is a rental).The difference in insurance quote with 5% and no coverage is ~ $1200 for the year.

Assuming the ARV you mentioned is accurate, at 75% LTV you'd be able to pull enough equity to cover your existing payoff, refi costs and walk away with a good chunk of cash in your pocket.

The expansion of ADUs hence serves a dual purpose, simultaneously addressing housing affordability concerns and nurturing the urban economic vitality.As far as sewer and water, they would be pulled off the main in the back of the property.

You may pull it off.Still, there's something to be said for the critical mass, many baskets, safe-if-boring neighborhoods.

I'm unsure if you would be able to combine both loans given that the HELOC is tied to a different property than the one you got traditional financing on.A work around is if you are able to purchase the new property with the HELOC at a significant enough discount, bring the property value up via renovations or additions, then refinance the property, pulling out enough money to repay the HELOC. 

For my rehabs, I pull owner builder permits where needed even for work done by licensed contractors.My jurisdiction does not require permits for cabinets, counters, or flooring replacement.  

It's important to have a good understanding of the different areas of Cincinnati and Dayton, so you can assure that you're pulling accurate comps.

If you like the home, area etc, you could refi and pull out the same amount of money.

Another work around that isn’t discussed much is working on a strategy with your insurance company to protect your other assets in the event of a claim.But also, it wouldn’t be a bad idea to consider getting the financing into your LLc name with a community bank and pulling cash out if you have substantial equity.Right now, since the loan is in your name, it shows up on your personal credit report.