There are two pieces to the loan calculation - loan to value (needs appraisal), and debt service coverage ratio (rental income vs. mortgage).

Make sure to have your contractor ready and your cash or hard money loan ready as well to work on your repairs. 

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

Starting with an FHA loan on a property with separate utilities is a great way to begin.

So how do I socialize the benefit of doing something like taking a 200k ADU construction loan to add $X in top line and $Y after servicing the new note, but with an increased property value etc etc? 

why would a tax bill wipe out your equity at 60% loan to value?

I’ve actually had a number of people exercise their option and get a loan and buy the house.

I would also recommend doing your due diligence on the new lender, and make sure they are not just a salesy loan officer trying to win you over with term sheets that don't exist... 

HELOANThis takes second position and is a closed end loan, meaning it's given as a lump sum similarly to a "regular" mortgage.

They can be sold to owner occupants that get a conventional, fha or Va loan.