@Carl RowlesI recommend a HELOC or Heloan on your primary residence or the rental if you have enough equity in either.

Both strategies are great and have their pros and consOne of the biggest wealth building tools in real estate is the ability to purchase a property as a primary residence and put less then 20% down.

You’d also make all future capital gains at least partially taxable instead of tax exempt by converting your primary to a rental.

We were able to get into it with a 5% down primary residence loan.

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

From their point of view they're seeking three primary things:Access to capitalControl of their dealCost of capitalThey likely have a lot of the first two so the only motivation they'd have to accept your money into their deal is either the third bullet. 

I worked with a travel nurse who does shift work and 5 lenders said that they couldn’t finance her primary residence purchase and I ended up making it happen for her. 

@Pat Aboukhaled I would ULS (unit lot segment) the primary house and include a clause in the call option that would prevent them acquiring the DADU.

I’ve read in books of people getting past having to live in the property they own so they can rent all units year one of ownership(living on the property with an rv). Are there other more creative ways to start cash f...

However, are you planning to do a 1031 exchange, or is this a primary residence?