Here are some financing options to consider:HELOC or Cash-Out Refi on Another Property – If you or your mom have equity elsewhere, this could be a more flexible and lower-interest option.Business Line of Credit – Since the property is in an LLC, you might qualify for a business LOC, which could cover construction costs.Private Money Lender – If you’re okay with 12-15% rates, a private lender could fund this as a short-term loan, especially if the guesthouse will generate strong income.Construction Loan – Some lenders offer short-term construction financing, which converts to a longer-term mortgage once completed.Seller/Partner Financing – Bringing in an investor or structuring a joint venture with someone willing to fund the build in exchange for a share of the income.Credit Card Stacking or Unsecured Business Loans – Riskier but could work if you need to bridge a gap until the unit starts cash flowing.Would love to hear more details—especially your timeline and expected rental income.

Will the renting of ADU rise to the level of trade or business? 

The City has done a lot of work to clean itself up in recent years so you will find not only a lot of rehabbed houses, but businesses and store front rehabs, too.

They are an insurtech for small business insurance. 

Figure out how you are going to find buyers/sellers and build a business.

You may be better off with a higher rate and the flexibility to access the equity in that property to grow your business or even bail you out of a jam.

However, I believe this life-changing turn has been a blessing in disguise.In 2022, I had the opportunity to work with a skilled entrepreneur and together, we grew multiple businesses in Excavation, General Contracting, Inground Pool Installations, and Real Estate.

For example, they have not sent us the rent they owned us for the last three months, and here is paperwork to show it is not in our account, here is the contract with them stating they would pay on this day each month, and here is the title of the house in my LLC/name to show you we own the property too.

Avoid mixing relationships and business.

Don't quote me on that, but it's easy to look up the IRS regulations.I recently had a conversation with somebody else who is planning to start an STR business.