Once the DADU is finished, you can refinance your property, ideally through a cash-out refinance, to pay off both the HELOC and the construction loan.

If people want to live off cash, that's fine.

We need to generate some more cash flow in our lives and we can go anywhere.

Once these mortgages are paid off and/or generating more cash flow, we intend to use them as passive income for retirement and retain the option to access the equity for emergencies. 

Now it could sell for $2.1M.- Would you sell for a gross profit of $300K or keep it, with a cash flow of about $1,500 a month? 

It is still possible to have a positive cash flowing property but you have to be smart, run the numbers and hunt for the right deal.

I found a duplex that currently cash flows very well even with today's rates. 

Purchase price: $1,170,000 Cash invested: $900,00016 Unit Value-add property we significantly renovated spending $35k per unit doing interiors, exteriors, and amenities.

@Tim JohnsonThere are essentially two ways (and a few variations) to purchase this deal, depending on how the owners are selling it:As a going concern:  In this instance you are buying the business, so it is the business you evaluate: assets, liabilities, revenues (historical: 3 - 5 years), operating costs (historical: 3-5 years), future financial projections, goodwill, etc.    

For investors, multi-family properties are great for cash flow, and local networking is key.