If I have several options, I would prefer a HELOC with no initial draw requirements (i.e. to establish a literal line of credit that I have no specific short term plans to use), i.e. not something like the better.com HELOC. 

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

(120k total)2nd house we are making a profit of 120k but this  "profit" would literally pay us back for our initial investments into our LLC together we used on the first house ...anyone have any idea how the gov.

Quote from @Milly Owens: You may be right James, then again you would have a hard time convincing Asser...since the program reimbursed him his initial investment of $1,000 and then paid him $10,000 for the lead!

Requesting Guidance on Tenant Dispute for San Jose, CA Rental Property.Details:Lease started on August 5, 2024.Initial walkthrough showed no signs of rodent activity.Tenant reported a rodent issue on August 25.

Rehabs is how i initially scaled.  

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

I've had a long career in community development and have a lot of bank contacts that would likely be interested in investing, but I'd need to prove the concept first with an initial fund (there are also a lot of other community development tools that could be leveraged to maximize and scale this).

It should answer a lot of your initial questions.