I am in Los Angeles county California and in the process of converting my garage into an accessory dwelling unit.

We also went through the city and paid the impact fees and had it registered as a legal accessory apartment, which was not difficult to do. 

Many properties had an accessory dwelling unit (ADU) on the property prior the large UDC overhaul in 2001. 

When I inspected the property, I found a really cute 1 bedroom accessory detached home behind it, on the same lot.  

The security interest Borrower grants includes all accessions, attachments, accessories, parts, supplies and replacements for the Collateral, allproducts, proceeds and collections thereof and all records and data relating thereto. · For loan amounts of $25,000 or less, SBA is not taking a security interest in any collateral.Page 2 of 11SBA Form 1391 (5-00) Ref 50 30Doc # L-01-0476006-01SBA Loan #8496557408 Application #3600074047DocuSign Envelope ID: CA47909F-9BAE-44B7-ACA5-7A831F089087In ProcessREQUIREMENTS RELATIVE TO COLLATERAL· Borrower will not sell or transfer any collateral (except normal inventory turnover in the ordinary course ofbusiness) described in the "Collateral" paragraph hereof without the prior written consent of SBA.· Borrower will neither seek nor accept future advances under any superior liens on the collateral securing thisLoan without the prior written consent of SBA.USE OF LOAN PROCEEDS· Borrower will use all the proceeds of this Loan solely as working capital to alleviate economic injury caused bydisaster occurring in the month of January 31, 2020 and continuing thereafter and to pay Uniform CommercialCode (UCC) lien filing fees and a third-party UCC handling charge of $100 which will be deducted from theLoan amount stated above.

Keep in mind, every county has a different requirements for an ADU / Building but here is an overall picture of it down below. https://www.sanjoseca.gov/business/development-services-permit-center/accessory-dwelling-units-adus/common-questions-about-adus

A similar strategy that is quite popular here is to house hack with houses that have an accessory dwelling unit (casita, in-law suite, whatever you call it).

The only ADU loan program that I'm personally familiar with is the Norris Group's:https://www.thenorrisgroup.com/california-hard-money-terms/accessory-dwelling-unit/They have interest-only payments for three years, then the loan is due.

It needs more paddock fencing, stall accessories, maybe a round pen.

From the link "There is only one accessory unit on the property; multiple accessory units are not permitted."