You really have a great position here.If your private money runs out or runs tight, then you can explore other funding options like hard money.

If you used a loan to rehab your property and find yourself in a difficult position, doing a straight refi (just paying off the old mortgage) will be easier than trying to pay off the original loan and take additional cash out.

If it's an HOA-based one, or has some other deed restriction, get out of the position.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

There is now some positive cash flow (not much considering the value of the asset, but a lot considering where the initial cash flow was).  

Hi Jasmine-Congratulations on being ready to turn your primary residence into a rental.Your question is should you use a property manager or self-manage your property.If there is enough positive cashflow or you can afford to pay a property manager, I always recommend doing so for the following reasons:1.

Does anyone have experience of setting up a STR while in the same position? 

The more time you spend talking about other options and try to build up the negatives, the less time you are spending on what you fell are the positives of your own idea.If you believe that you are onto a great idea using L2P option contracts and forming partnerships where someone else provides 100% of the money while you provide 100% of the real estate-related functions, then start it up and make it work.  

The cost to build will be significantly more than the amount of “value add” of an ADU putting you in a negative equity position.

As a reminder, listing tenure positively impacts your performance on our marketplace.