That makes much more sense.There are a lot of rules regarding ADU's including, but not limited to set backs (4' from rear and side), height restrictions (16'), size (max is 1200 but main house can not be smaller than ADU), parking (no covered or non covered parking is required to be added if you use the existing garage for your ADU so long as you are within range of public transport), renting (there are no longer requirements of owner occupancy of main house to rent out ADU (except for Junior ADU's), you CAN use tiny homes and prefabs as ADU's, if the detached garage is on the property line or inside the required 4' set back, you do NOT need to tear that down and if you do tear down the wall on or near the property line of the garage, you can rebuild it in its same location (prior years laws required you to then build outside the 4' set back), multi family properties are allowed 2 ADU's to be added plus you can convert non livable existing space into livable if you meet fire codes, and the list goes on.Another big benefit to the new laws is that if you keep the ADU at 750 sf or less, you avoid impact fees from the city keeping your permit costs down.There are a ton of other build out questions like costs of design/structural engineering, permit fees, etc.

The main reason is that as you pay down the mortgage, that equity can be added to the HELOC and can be accessible.

@Michael Temple that’s a great tip, I appreciate it and will be adding this post to my notes!

I will be adding this information to my notes for later ...

There is wording in the lease from our property management team that allows collection & legal fees be added if they are needed. 

's idea about deferred maintenance should be added in, it's done on reverse mortgages, where borrower can't get red tagged or have health and safety violations; but then it's a pile of money to check and balance for 30 years.

I’ll be adding it to my list of deals as soon as it’s done!

When you buy a property, buying right, you need to assess the value, not just the cost but the economic value that must be added to put the property in good condition, a serviceable operating condition.

I understand that when you use an FHA loan to reduce your down payment that you are required to carry PMI/MIP which will be added to your monthly mortgage payment but won't putting down a much smaller amount like 3.5% also skyrocket your monthly payment as well?

It also has drop offs on the property and there is a need of retaining wall on both sides of the road that would have to be added as well.