Talk to the seller, but options are to cancel the sale (and risk losing your deposit), renegotiate to lower the price to allow you to fix the problems or ask them to fix it. 

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

It’s a lower risk strategy since you’ll be living in one of the units, and you’ll qualify for low down payment loans.

Most PM software allows late fees to be charged.Ours allows us to absorb the cost of tenants paying electronically thru the software - it usually wants to charge tenants, but we want them to pay electronically.We manually charge tenants a Processing Fee for mailing in their rent, a slightly lower Processing Fee for depositing to our bank.Your success will depend on the Class of your tenants.

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. 

Further context, I have zero debt, high 700s credit score, one other investment property here locally. 175k in cash available, looking to do DSCR loans or cash and then refinance.Peoria, Illinois- Great need for lower income housing, market appears to have many options.Lawton, Oklahoma- Looking only at extremely cheap properties, as it seems it’s not terribly hard to find renters.

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

I had a few questions and would appreciate any advice in general.Strategy / Goal: BRRRR but no major rehab at first to lower the risk.

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

Hi Angus, A cash-out refinance is typically not considered a taxable event for businesses since the borrowed funds are regarded as liabilities owed to the lender.