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.

North MS is a great option as well! 

For multifamily, target markets with strong rental demand, value-add opportunities, and creative financing options like seller financing or private capital.

I haven’t seen many value-add products, but there are solid options on the DSCR side.

Also, explore creative financing options that might balance your partner’s limited credit/cash flow without putting all the risk on you.If you're attorney can't clearly articulate this, maybe it's time to find a new one.

Should I get preapproved before searching to know my options?

Berkadia is #1 Freddie Mac Optigo, #3 Fannie Mae DUS, and #3 HUD/FHA multifamily lender in the country as of YE 2022, and my team originated ~$325,000,000 in agency loan volume last year.Lately I’ve noticed many of you asking about multifamily financing options, and thought this would be an opportunity to host an AMA regarding Freddie Mac and Fannie Mae agency multifamily financing, an area in which I specialize.

It can be hard to say what exactly a good/bad deal is...I also think it can be very easy to get caught up buying RE - when that may not be the best option.

I have seen loan products that will let you purchase a mixed use property to live in the residential unit, but that is a specific product and you should consult and expert to see the best option for you and your cash on hand.  

I’m an ex realtor who also has some experience working for a private equity group for a short time before I got a really good gig in a completely unrelated industry that will allow me to have options when investing.