@DeAndre Mason If the lender is telling you that you need a 660 to cash out then that would be a lender overlay and not part of VA Guidelines. 

To depend on the rates to drop substantially to cover refi cost is a gamble.

Mortgage, Line of credit,heloc, heloan.Lenders follow their own lending guidelines for investment properties.

One learns very quickly and unfortunately usually the hard way that cash tenants are a huge gamble and that section 8 is the only way to find healthy, consistent, positive cash flow in Detroit and many of the other inner cities accross America.

but you spent more than that including holding costs.and say your appraisal comes in at 300, and your lender says at the last minute you only get 75% because their guidelines changed. that's only 225. 

There are a few, and I mean very few, DSCR lenders who have recently updated their guidelines to allow for padsplit properties...

Even if you build according to FEMA guidelines, a storm is a storm and you virtually cannot stop them.I would personally go elsewhere if you are going to stay in this business...But Good Luck!!!

It's like gambling for them but will want a much higher pref and much higher equity upside from syndicator because of little to no track record.

Some states may restrict closing in a personal name, however this would be a lender specific guideline. 

The guidelines for ADUs will vary from lender to lender, but there are options for those, yes.