Have you gotten out of the original hard money loan or still paying the double digit interest cost?

You don’t necessarily have to pay points for the rate, but you’ll very likely be charged an origination fee.

Originally posted by @Elliot B.

For simplicity, I've assumed no principal paydown on the original $300,000 mortgage.After two years: $400,000 × (1 + 8%)^2 × 75% - $300,000 ≈ $49,920After three years: $400,000 × (1 + 8%)^3 × 75% - $300,000 ≈ $77,914After four years: $400,000 × (1 + 8%)^4 × 75% - $300,000 ≈ $108,147While the above example is oversimplified, the concept is valid.

If FNMA, FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met:https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htm

Just to clarify after reading what I originally posted, I would be getting a building loan from a bank that is convertible at the end of the build, not financing it cash from my pocket.

I have to scroll down to find the original post, so I’m reading the responses before the actual post.  

Quote from @Rick Pozos: I think the original poster is just getting very excited because it is something new that they did not know about before.

Original home (retained)New DADU

Originally posted by @David Keys:How many properties would you have without a partner?