My pre conceived notion was that 80 was sufficient @Tyler Garza With respect to DSCR loans, the LTV is only one factor that lenders consider when underwriting a loan.

You would then have two loans, one on your home and one on the refi to access the equity on the investment home.Why not just use the refi cash out from your home loan for future deals? 

I recently completed one on a multifamily property and found it to be a cost-effective approach.That said, there are a couple of additional factors to consider beyond the code differences between a garage conversion and new construction:Coastal Overlay Zones – If your property is in a coastal overlay, building a ground-up ADU may require Coastal Commission review, which can add time and complexity to the process.

I'm assuming you have one lease covering both tenants and not individual leases.

It's on a Main Street (Perry BLVD), and it is on a bus line.About 8 months ago, one unit went vacant, and we can't find another tenant no matter what we try or how low we go with the posted rent.

I will start by saying that I am not a tax professional, but I am sure one will answer this post that is more qualified that I on this topic.

If I were to invest into one that was grandfathered in, would I have to convert it to a MTR?

My boyfriend (who lives in the house he owns) wants to rent a room to one tenant in his house.

Quote from @Chris Ganz: @Charles Carillo after the initial lease which was a yearly one was up, I switched it over to a month-to-month.

I also have no W2 and possibly one of the highest debt to income ratios in the country.