It is NOT a 'pay your money, here's your course and see you later' situation.This is a group of likeminded individuals that are all working towards the same goal and are happy to help each other grow and make it too.

This would be in central Jersey which is still a hot market as a result of record low inventory.I am planning to do this strategy since I want to put low money down (10%) on a construction loan and achieve a quick build to lower my holding fees. 

Are you able to close the transaction (have enough money (and/or credit) ?

Quote from @Cierra Butler: Jonathan, The tenant does not currently owe any money.

Cash out: $55,000All money out plus roughly $3,500 in pocket.... principal and interest $767/monthCash flow estimated at roughly: $200/monthMy plan would be to refi around year 4 or so before the adjustable rate kicks in.

find a strategy that is repeatable and duplicatable and gets your money back.

We have lived in our other two deals, made money on both, but I have no idea how to do another deal safely without living in it.

This way you learn and make a return on your money.

During this time you are not generating any return from the money invested in the ADU.

I have a 401k/457 sitting there as stagnant money in NYC.