Does the JADU would be no conforming to our lending underwriting. 

An entity doesn’t qualify for conforming residential loans.As mentioned, you need insurance for the properties inside the LLC.

Apparently the previous owner knew this and had tried to convert to conforming 5 unit but was told there was insufficient parking. 

Below is 13 month trailing statistics on all single family properties that conform to our property profile.

Specifically, 5695 says: Who Can Take the CreditsYou may be able to take the credits if you made energy saving improvements to your home located in the United States in 2022.Home.A home is where you lived in 2022 and can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards.Generally, landlords don't live in their rentals and a "home" in this context does not include a rental.

Almost all experienced investment teams will provide the following services and more:Develop a financial profile of properties that will meet your specific situation and goals.Working with their team, select and validate conforming properties.Present only fully-vetted properties with the necessary information to make an informed decision, including estimated renovation costs - not MLS data sheets.Handle the offer and closing process.Provide overwatch and keep you informed during the renovation process.Provide on-site renovation oversight and keep you informed throughout the renovation process.Arrange for professional photos.Work with the property manager to transition the property to them and get a performing tenant in place.Below is a diagram of the process we follow.

For me the rule of thumb is if I don't see myself living in that area then why will I get a good tenant that is willing to live there.If someone feels conformable living in such a neighborhood most likely it will be easier for them to deal with the type of people that live there.

Financing is a bit difficult because you are enclosing living rooms and other rooms sometimes, so it isn't necessarily conforming to the zoning.

I'm in a market that releases stricter regulations, yet grandfathers in previous conforming permits.

You can give the property profile to your realtor, and they can find conforming properties.