The traditional method of absorbing pricing hits, of increasing the interest rate more, doesn't currently work because no one on Wall Street wants to buy Fannie Mae mortgage backed securities that have any 9%+ paper in it.

Especially if one wall is a plumbing wall and there is a crawlspace.The new Fannie Mae ADU lending program is for owner-occupied on one unit.

I am a top tier certified TC with Pace Morby and Molly Tennantʻs mentorship and I can send you some title companies that are creative friendly. 

Lenders look at the legality of the entity and its a LLC and LLC's according to fannie mae guidelines (if this lender is a fannie lender) would treat this LLC as a partnership.If we are to look at it like a partnership according to FNMA guides then we'd have to hit you for the at the min the property taxes and insurance monthly and at "underwriter discretion," we'd hit you for the mortgage too even if the payment is silent because its considered short term debt (your going to flip/churn the money/profits into other projects).

@Jacob Maes yes it can be very profitable.

Fannie Mae has also just lowered the minimum down payment requirement to only 5% for 2-4 unit properties, which is a huge change as it used to be 15-25%.

I don't want a mortgage originator to qualify them for me.The buyers are experienced investors and the reason they want to do seller finance deal is because they max out the number of Fannie Mae loans they can qualify for.

Just found out that a Fannie Mae allows to transfer to LLC since 2016 without forcing due on sale clause.Unfortunately 3 out of my 4 aren’t Fannie Mae’s

Very soon there is a new Fannie Mae/Freddie Mac loan product coming out for 5% down conventional loans on 2-4 unit properties and rental income can be included towards your income.

Thompson called it "another step to ensure that [Fannie Mae and Freddie Mac] advance their mission of facilitating equitable and sustainable access to homeownership."​​