I am doing this because this is not the only property I intend to buy so I thought I should start off with an LLC now.

They are typically the opposite of value adds in that they typically have a hands off cost more than the value added.Your broker is correct that Fannie/Freddie are not to use the rent from the ADU. 

I don't have the remaining 30k to pay off the mortgage. 

Welcome @Sartaj Ghai,Sounds like you are off to a good start and have the right long term mentality to go far with this!

If at least one of you can't do that, I wouldn’t do anything more than rethink this as a one-off project.

So, being that a comp sold for $872,500.00, I had to take 20% off of that ($174,500.00) to equal a $698,000.00 estimated ARV.Thus, with a forecasted debacle from loosing around $163k, one should deliberately refrain from doing this deal.

Even if its cutting the warranty off, sticking to manufacture warranties, and saving the cash to pay for expenses when they come up.

I am currently looking for a start up line of credit for my flipping business and clicked on their ad through Facebook.Started off sounding good with them getting me a line of credit but then switched to them  applying for credit cards with "Partners" during the initial conversation.   

Hey @Wade Wright - First off congrats on BUILDING A GROUND UP fourplex that is amazing!

The truck you bought will instantly lose value the moment you drive it off the lot, it will depreciate over the years due to the miles you rack up on it and the normal wear and tear of a vehicle.