We haven’t pursued that a great deal but we’re open to all creative ways to structure the deals, so keep’m comin. :) If you have insights regarding best practices for offering and/or structuring the equity idea over seller financing, I’d love to connect and chat about it.

Most of my properties consist of 1-4 units, but I also have a few 6-24 unit properties.I am personally more interested in pursuing additional commercial deals. 

But agreed it would have been challenging and negative to pursue- and not worth it.

Interested in where this would be a financially viable business model to pursue if not here and what the margins would look like

However, if you are pursuing Short-Term Rentals (STRs), each partner must qualify individually for "material participation," which can be more challenging when there is a partner.

BP was apparently useful to you, but you eventually left to pursue something that put money in your pocket.

I worry that towns might make the zoning requirements for ADUs so specific that it would just be too cumbersome/costly to pursue this.- Towns could potentially challenge the law if they don't love the idea of people living in the backyard of SFHs.

But they'll cash flow even with property management and I can pull most if not all of my money back out on the refi because of the LTV.So I guess this is the right method for me to be pursuing right now. 

Thank you for the advice, and I’ll get in touch if I ever decide to pursue the Detroit and Memphis areas. 

You could use the HELOC as the second lien and still pursue the DSCR loan for your first position.4.