They are really wanting to push this agenda through. 2020 has really made the process alot easier.Once you own the SFR maybe through conventional financing, if the case may be, you can get a construction loan or a hard money loan to build the ADU specifically.I have several sources based on your goals I'd be happy to share with you if you DM me.One other thing to consider is you can now do what is called an Junior ADU and a regular ADU all on same property and with same loan [again depends on the price point and how much down you have.IE: $750k Price Point, ADU Cost $200k Total is $950k - Will not qualify for conventional financing and would have to go jumbo unless you had the loan less than $750k of so.But as an owner occupied you can go with as little as 3% down and borrow up to the $750k amount, or if you put down $100k you can borrow that much to do the rehab as one loan.By being able to get the numbers as a conventional loan you have more options.I also have a lender that will do ADU and he is a non QM lender, seemingly aggressive on the concept.

It seems like maybe a Pace Morby people can help you.

Ask yourself the following questions:Is the property currently profitable (after all recurring expenses) and are rents and prices increasing fast enough to keep pace with inflation?

In less desirable locations the initial cashflow may be higher but property values will be flatter and rents will only increase on pace with inflation if that.

Rent control may prevent you from increasing the rent fast enough to keep pace with inflation.

Principal is paid down quickly, therefore freeing up equity at a more rapid pace. 

Now I know this was an abnormal market, however we are currently on pace to experience upwards of 12% this year. 

Similar to the national trend this year inventory was moving at record pace through 2020 and is now at record lows.

I can’t speak as much for your area further south; I stick to the suburbs of Harrisburg.Since appreciation moves at a snails pace in Central PA, and there are no real “up and coming” areas that will see drastic appreciation in 3-5 years, I like to look for forced appreciation opportunities.

If market rent grows at a larger pace then the 2.7% annual increase, then you are out of luck.