A HYSA pays 4.5-5%(before rates went down) pre-tax, 3% net tax if you're a high earner. 

Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.

I assume your prop tax increased 1.1% to 1.2% of the ADU cost even though the ADU only valued at $75k???

This might make sense, but again, you are just deferring the taxes and now pushing tax from capital gains to ordinary income. 

I recommend that you find a trusted or recommended Mortgage Loan Originator (MLO), who can give you options for property-based loans (mostly investment loans) and they don't use your taxes but the P&L of the property.

Focus on cities with favorable price-to-rent ratios, population growth, and employment trends, such as Des Moines, Oklahoma City, and Charlotte, while considering factors like landlord-friendliness and property taxes.

In fact, I’ve learned that they owe more than the house is actually worth.  

You also don't have to pay state tax on income. 

By and large, QI's have very high ethical standards, and are sometimes overlooked as the engines of this tax saving tactic.]REPUTATION MARKERS 📊INDUSTRY STANDINGMembership in professional organizationsLeadership roles in FEAEducational contributions to the industryRelationships with major title companiesCLIENT RELATIONSHIPS 👥Testimonials from CPAs and attorneysReferences from title companiesLong-term client relationshipsTransparent fee structuresRELATIONSHIP RED FLAGS 🚩Overly familiar with your realtor/brokerKickback arrangements (illegal!)

Thanks for readingDavid $250,000 tax-free?