It worked out fine for my protege as the buyer ended up bridging most of the appraisal gap because my protege was willing to rent the place and therefore was not going to sell it at the appraised value (good to have back up plans).what value were you expecting an appraiser to put on your ADU?  

You just want to make sure there is enough profit in the property you buy so when you refi out of the bridge loan you can recoup to HELOC money.

.*  The property must be habitable...and, you most likely will not get the max (you knew that), and probably a lot less than you bargained for.Other options:1 - Short term partner or short term bridge loan. 

In terms of financing, if you have fairly good credit and experience with such project, you can get a short-term bridge loan to acquire the property and renovate it.

Perhaps gathering more information or choosing to make small adjustments in your marketing plans will bridge the gap for you.

@Curt Davis undefined heck out the address 5545 bridge millBrought at the auction for 113k sold the same day for 156k

When those bridge loans end and they need to refinance that's when I plan on making my moves.

Jay is right, move as quickly as possible time is of the essence, I have done a few bridge loans for builders that have got stuck in a bad situation and can't move on to the next project. 

Primary mortgage, bridge lenders, pref equity, immediate sponsor ownership, etc can all impact the risk and return of an offering.  

Bridge, portfolio, foreign national and other specialty loan products.Key Bank, FLorida flexible lender, HELOCs on secondhomes and rental properties. 90% LTV on primary.Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%.