With most products their is a place where this makes sense, but in my experience there is only 1 with this product Right Way = Pretty low credit score and cannot qualify for a traditional loan to access the equity and you need the cash fast Wrong Way = Any other reason than the above. 

I work with several private & hard money lenders who specialize in funding BRRRR projects and can offer more flexibility and quicker turnaround times than traditional banks.

Many traditional banks won’t touch them, and even DSCR lenders will avoid them if the build out is done prior the securing long term debt. 

I forget It was likely a mix of private and traditional loans I just don't recall to be honest nothing illegal. 

Creative financing: Explore seller financing or subject-to deals for your next property, which often require less upfront cash and bypass traditional lending limits.You’re on the right track thinking long-term—house hacking and leveraging your duplex are great moves.

This is the actual calculator that traditional underwriters will use.

Recent discussions in Bloomberg and the Yale Law Journal shed light on the challenges posed by traditional zoning regulations and offer insights into potential reforms that could benefit co-living arrangements.Zoning Laws and the Definition of FamilyTraditional zoning laws often define "family" in narrow terms, typically limiting residential occupancy to individuals related by blood, marriage, or adoption.

You need a commercial investment-focused broker with no seasoning requirements or not as strict as standard traditional guidelines.

This also begins YOUR title seasoning, so that when you're ready to take out a traditional mortgage, you can refinance and pay off the seller without a title seasoning issue. you can buy title insurance from the title company at closing. this is a good idea. 

You want a DSCR or an investment loan from a traditional bank.