So we are utilizing a combination of savings, and then appreciation on the property to get to the point where the 80% ARV conventional loan will pay off our current FHA. 

I usually use 15% combined.

Thank you so much everybody for your inputs.This is my first investment property and I only bought it last April, until this year I did my taxes, so, no CPA to help answer my questions...Just FYI, the payments on the loans are belowprimary - 2500 (P&I)rental (bought for 235k) - 890 (P&I)there is about 300$ cash flow nowrefi to one loan at 2.875, the payment will be approximately same (4100) including escrow for both.Since the payment was also on the same lines, my immediate thought was to payoff...but if it doesn't make sense or if I can't write-off the taxes...I would not combine them.thank you all again for all your valuable information.

Property assessments rarely match the sales price. 

However, it would be extremely rare for this to apply to short-term rentals of your home or second home.Exception to the Significant Services Rule – If the personal services provided are similar to those that generally are provided in connection with long-term rentals of high-grade commercial or residential real property (such as the cleaning of public areas and trash collection), and if the rental also includes maid and linen services at a cost of less than 10% of the rental fee, then the personal services are neither significant nor extraordinary for the purposes of the 30-day rule.A loss from this type of activity, even when reported on your Schedule C as a trade or business, is still treated as a passive activity loss and can only be deducted against passive income.

(Project main home & ADU combined are 6/3 2505 sq ft)It's looking like our project will be the comp for everyone else building ADUs in the area Keeping an eye on the market and so far there isn't anything under construction in the neighborhood

I got 3 houses on the same block with 12 combined beds. 

Those agreements are rarely enforceable as you can't be precluded from moving on if you have cause or if you have free will to fire someone.

So you will be better to do a combination multi-family and single family otherwise you will hit the 10 mortgage limit if you do single family rentals only.

It's almost like a combination between Whatsapp and Discord.