Originally posted by @Ian Ippolito:Kevin, sounds like you are a bit under the gun and have already initiated your exchange.

My initial thoughts would be to secure a construction loan for the total rehab amount based on the entire property's ARV.

Additionally, the potential for value-add opportunities such as adding a ministorage or other high cap rate investments in the future could further increase the overall return on investment.Considering the potential for appreciation, the current NOI, and the future potential for additional income streams, this property could be worth considering as a long-term investment, despite the initial lower cash on cash return.

I think expanding is great, but take baby steps initially.   

I initially wanted to keep the property but I was concerned about a market bubble so I sold it.

The guarantee is that they will work with you until you recoup at least your initial investment (if you do the minimum required), but it makes no sense to keep digging a hole you can't get out of. 

Yes, there are some requirements to follow initially.

Based on my limited knowledge of AI, I agree that it will be used in the not-too-distant future to underwrite transactions, just like it's currently used to draft contracts and legal pleadings. 

In addition to the negative equity position, ADUs have other issues:1) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged (HELOC, cash out refi, etc).

My initial intent was to sell the property to another investor to increase my capital and invest that into other projects, but I have changed my mind and want to use it as a rental.