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

My cautionary tale for shopping lower and you need 100% clarity on what's covered and extra fees.

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

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

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

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. 

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

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

It's led to incredibly high occupancy rate in the off-season, but I'd rather have a slightly lower occupancy rate in order to reduce wear and tear and leave some weekends open for personal use.I'm at a loss on what to do about this.

I have been acting as an investor with 20% down on all of them so if it were a 4 unit going as a house hack with a lower down payment that might change things.