@Annwar ZahriehIn addition to some very good advice @Patrick Drury gave.

While you still have to materially participate, you don't have the additional hurdle of needing to spend more than 1/2 of your total working time within the business (like with REPS).

ADUs in SRH areas typically get valuations far below the hands off ADU addition cost.  

And for over 10 years, I have been in multifamily affordable housing development, and I am very familiar with asset management, property management, construction, and tax credit financing.

That's a private agreement between you and your LLC and that loan is not recorded in any banking data base that it would be put on any credit report.You are fine just depositing the money and then moving forward.

My credit is above 800.

This is my current debt, assets, credit and income info: Credit Score: If I pay off most of my revolving debt I should be able to get my credit score to 720-740 pretty easily.

We're considering our options for moving forward.Numbers:Purchased for ~ $230,000 (2.5% interest)Remaining balance ~ $220,000Appreciated to ~ $400,000Cash flow is ~ $500 a month after setting aside for all reservesOptions we're considering:1- Cash out refinance- at current market rates, rough estimate is that we could access close to $100,000 in equity, but our cash flow would go to $0 or possibly negative for a period.2- Sell now - if we sell before the end of the summer, we could still qualify for living in the property for 2 out of the last 5 years for the additional tax benefits.

I've financed a bajillion flip deals in addition to doing it myself.

I’m Mike Reis a commercial LO for a credit union in SC with favorable terms for investment RE