In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

So for the additional three bedrooms, I plan to Airbnb and/or expand the shared-housing community I currently have for women in transition at my duplex .

However, they can sometimes be higher due to the additional risk taken on by the lender.With a hard money loan, you typically make interest-only payments during the loan term.No, you wouldn't owe any more interest beyond what has already accrued if you finish the project in 3 months and pay off the hard money loan earlyIt's great that you're exploring different strategies for your real estate investments!

I’d appreciate any additional suggestions you might have! 

If we sense there is a red flag, were asking them to upload additional documents like tax returns w2's etc.

In addition, there's a church, Bethel Church, and they have a ministry school, Bethel School of Supernatural MInistry, which is expanding to have 3000 students.

- Highly recommend REQUIRING tenants to get Renters Insurance and adding you, as the landlord, as additionally insured.

With hopes to build two additional cabins in the future.

This is not as passive as other investing but it will help launch your portfolio so that you can continue to invest without needing to work additional jobs.

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage.