Make sure you know the value the ADU will add to the property before building the ADU. 2) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged by the ADU (HELOC, cash out refi, etc).

I know thats a contradiction, but a matter of growth. 

Great to know your making moves again this year.

@Zack Whiting We don't know your experience but jumping into auctions is not the easiest path for REI.

I know there's seller finance and "B" lender that are good for the short term, but if a balloon payment is due say in 5 years, there's no guarantee that my DTI would be in a better place then I'd be stuck without funding. 

Thanks @Jason Bott do you know of ones that may cover the same in Texas? 

My buddy just got burned by someone borrowing from multiple people where the others weren't aware of each other and they thought they were the only one lending, etc.It all comes down to how well you REALLY know each person in the deal, and then, "do you REALLY know them?"  

And knowing is only part of the equation.

For those who don't know, you can sell your collateral if the price triples and you are now over collateralized.

Let me know how I can help you get connected with contractors or anything else you might need