I would look at the DSCR loan as the first option.By the way, I suspect you are going to be disappointed by any refi appraisals   ADUs typically appraise poorly   JADUs can lower the property value Vs having the space as part of the primary unit.  

Sounds like you don't have the cash but you may have the time to do research and get crafty with a small team.

Quote from @Michael Belz: I was impressed by your blog post discussing the success of small cash-flowing real estate deals in Detroit, particularly with smaller houses.

Possibly break loan covenants and can't cure default, lender takes back property.  

Small multifamily is a good asset class. 

If i sell my SFR rental for $450k and equity is, for example, $200k...Can i invest 100k into a new SFR worth $275k and invest the remaining 100k into a sponsored DST or TIC (which deals are usually multiple hundreds of thousands of dollars?

@Ashley MierezConsider your margin dollars as well.

I was looking to get some advice on the best way to finance a small mixed-use property?

It’s a bonus if the bank offering the HELOC also handles BRRR loans — they’ll be more flexible and accommodating when it’s time to pay off the HELOC with a new loan!

STRs can bring great returns but are higher risk and more hands-on, like small-cap stocks, while long-term rentals are stable and predictable, like large-cap investments.