Their contribution depends on factors like local demand for ADUs, their design and size, and how they’re used (e.g., rental income potential).

Most (not all) HELOCs require that the property is titled to an individual (not LLC) and are full doc, meaning your employment history, income, DTI etc will be factors.

While that kind of income is not a deterring factor, when I looked over the terms of service many big red flags came up.

Yeah the landlord laws in CA seem pretty harsh which would be a big factor why I would go with out of state.

It’s probably not that you’re “small potatoes” to your PM, but more a reflection of the nature of the market itself—low rents, properties with higher maintenance needs, and tenant issues.These factors make properties in these neighborhoods more difficult to manage and generally less profitable for property managers.

You also have to factor in time limitations.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Yeah, various factors kept adjusting but for majority part it was the same sport. 2020, everything changed.

Location and amenities are the two most important factors that bring potential renters to an STR. 

The biggest factor will be how long you plan to own the property or when you think you may refinance.