There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

For instance, if it's a small portion and you indicated during initial intake/application that electrical is updated they wouldn't have any way of knowing. 

Thanks again to everyone who is reaching out I feel confident that I will be able to move forward with at least one of the contacts made since my initial denial. 

I've been running the numbers on different properties using a variety of online calculators for properties that I initially thought looked like there may be potential.

Quote from @Jin Zhang: You initiate the process by filing a 3-day Notice.

My targets from my basic initial research is Texas, Michigan, Pennsylvania and Ohio. 

The one that's short term and don't cost me a lot to initiate/originate.

Then they lock them in to a SLIGHTLY lower initial cost per kWh.

It is easy to initiate a trustee-to-trustee transfer between firms.

Initial Financing: Used a hard money loan (HML) with 10% down, interest-only at 10.95% for 1 year.