Generally speaking, if you borrow money at 7% interest and your investment is earning a 10% return, 10% - 7% = 3% and you are not growing faster than inflation.

FHA allows the construction or renovation of an ADU on the property by refinancing into a 203k loan, but the property must remain your primary residence.This stuff is subject to change, lender specific, and subject to other factors.

Would recommend you read a couple books about BRRRR, that will give you the basics and then feel free to reach out.It remains a great strategy, but you have to manage your expectaions.

I am confident that I will be able to refinance the remaining seller note principle with private money to allow me to hold off on putting more money in the deal.

Regardless, the market has slowed, but prices remain relatively stable. 

I was considering reading J Scott’s “The Book On Estimating Rehab Costs” but wasn’t sure if the information remains relevant 6 years later given how pricing has changed since then. 

The contractor will give you better pricing the more you use them, some GCs increase their price, but those are the ones you would like to not use (side note, of course with inflation you need to pay your people right, but it needs to be reasonable).

The remaining “residual” cost is then assigned to the building itself.

Quote from @Juan Ruben Cortez: I believe the funding fee is 0.5% of the remaining loan balance, plus maybe another $500 - $1,000 in lender fees. 

Thus, my taxes should be higher because of the income I generate.If I pay off the primary, I'll increase the amount I'm able to save monthly not having the mortgage, while also keeping the income generation lower on the rental because the mortgage remains open.Any thoughts would be appreciated!