Obviously paying interest on underutilized capital is sub-optimal but when factoring in the cumulative proposed transactional savings, the annual total interest cost could be equivalent or lower than the net of an alternative home equity line of credit on the same principal loan amount.One 'hack' could be to delay the actual closing of the DSCR loan until a quality purchase prospect is identified and/or near under contract.

I know the new rules are not official until next month, but the initially proposed contract term would go into 2026…)

The proposed entity will be a Texas Series LLC, e.g.

Our office manager argued that all the proposed repair such as drywall, floor, paints, doors, windows, thermal and moisture protection treatment, etc are part of the tenant responsibility.

If the ADU you're proposing is the make-or-break between this deal penciling out or not, AND if it is pivotal for your plans that it be the height that you are planning, I would personally advise you to abandon this deal. 

Does anyone know if a non-veteran buyer can assume a VA loan with the intention to rent the proposed?

Apparently there are quite a few women who feel a need for the group you proposed, but in my opinion it is counter productive.

This means you close your purchase and pray the appraisal with the proposed ADU has the value you think.

I'm not an attorney so please consult one in your state to make your decisions.You could propose they master lease the property as a trial period BEFORE you agree to purchase terms which would transfer title. 

Kevin, I actually proposed your solution but the seller need a quicker close so I just made it happen.