Once you have stabilized the property and satisfied long-term loan seasoning requirements of the bank, you'll refi to the less expensive long term lender. 

I definitely like the stability and guaranteed payments that come with sec 8, along w the ability to rid the debt rather quickly.

Each option has its pros and cons, and I'm hoping to get some insights from this community to make a more informed decision.Option 1: Building an ADUPros:Increased Property Value: An ADU can significantly increase the value of my primary residence.Control and Proximity: I can closely manage and maintain the property since it's on my land.Potential for Higher Rent: ADUs in bay area can fetch a good rental price.Flexible Use: ADUs can serve multiple purposes – home office, guest house, or rental unit.No Additional Land Purchase: Utilizing existing property means no extra cost for land acquisition.Foundation improvements: I will get an upgrade for my foundation which increase house stability.

The city's diverse economy and relatively affordable home prices contribute to its market stability.

I'm glad you two were able to connect.Although we have a pool of conventional and portfolio lenders, the challenge today is there are not a lot of "stated income" loan products.  

Balancing both can bring stability and a consistent income.Good luck!

There are way to many PM's not getting properties rented and they are staying vacant, there is also way to many rentals being rented less than market rent to get a "quick tenant" causing investors to lose money, you will also need that PM to be completely productive and quick to the applicants and also not trying to incentivize off of your property needing repairs.

By providing this a quality product with managed expectations and professional management oversite, this property continues to cash flow well and consistently.

@Shane BoyleFHA is a great product for a low down payment, but costly over time due to the mortgage insurance staying on for the life of the loan, with the low down payment.

Depending on creditworthiness rates and fees are pretty in line with other loan products.