Shop around for debt to see what is available and model the various structures to see how the different terms impact performance.The tradeoffs will be fixed vs. floating rate, conventional vs bridge vs CMBS vs bank vs agency. 

Lastly, know that any conventional loan likely has a 'due on sale' clause, where if you change the title of the property, they can call your note due.

Note that FHA can be a great option at 3.5% down but don't rule out the 5% down conventional option either. 

This method is particularly relevant if you're in a market with high rental demandI would like to know the appraiser who valued an ADU using income approach for a conventional loan.  

What are you considering a "conventional" loan vs. a DSCR loan?  

The investors that I have worked with in the past have found units from SFR to quads that are ready to close with conventional financing.Connect with me for any specific questions.Best of luck.

It was really insightful, especially the part about how DSCR loans offer shorter seasoning periods and more flexible qualification requirements compared to conventional financing.I’m currently focused on scaling into 6+ unit multifamily properties in New Jersey using the BRRR strategy.

Exhaust all of your conventional or government financing options before you get into DSCR. 

I unfortunately blocked two plots and paid 20% for both and now it is almost 2 years and there is no response at all from Wagner or the builders :(-------The house will come with stainless steel appliances including a dishwasher, hood, refrigerator, and range.3 Bedrooms2 Bathrooms2 Car garage 1323Sq/ftThe price of this property is $198,000.00 with a 20% due at contract and the remaining 80% could be paid via conventional financing or cash.

I've never heard the 25% thing before, but any difference between FMV and sales price would technically be considered a "gift" with potential tax implications for your parents.You can avoid most seller costs as there's no reason to use agents in this case.As an FYI: I always recommend avoiding a FHA loan, if you qualify for a low-down payment conventional loan.