Many months of costly vacancy, local market rent & resale deteriation, special assessments, property taxes and maintanance fees suggest a quick sale would have been the wise thing to do 2 years ago.

Purchase price: $395,000 Cash invested: $100,000 Sale price: $570,000 Such a fun project!

Sales Tax Breaks: Construction materials and services may be subject to lower tribal sales taxes—or exempt altogether.4.

You can then measure the cash flow impact versus the potential cash you would obtain upon a sale.

I dont want to get a loan for more than the true sales value of the property but I would like to get atleast the normal amount back for the money I have put into it. 

My day job is being a financial professional, so I have good experience with underwriting and sales that I believe can be translated to real estate.

Here are the specifics on our Seattle house: 5br 4ba 3,400 sq ft, built in 2019, $1.7M est sale price, $5.5K-$6K/mo est rental value, 4.0% mortgage with $3.3K monthly payment, around $1M in equity. 

However, that made getting the ADU done within 180 days of the ORIGINAL sale of the relinquished property difficult.

If you already have existing property and transfer property to an LLC, then it could trigger the due on sale clause the bank.

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves.