I don't know if they still do it but if memory serves a few years ago TD Bank would do a HELOC on a rental in second position but only if it was titled in someone's personal name. 

There is now some positive cash flow (not much considering the value of the asset, but a lot considering where the initial cash flow was).  

But a quick google says Jessica Miranda has had the position since April.

You’re in a solid position with this property, and it’s smart to weigh your options carefully.

Its always nice to hear positive things about local people. 

The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

Usually living in it for a few years may be enough for it to cash flow positive when you move out.  

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

This creates a negative initial position.