We received an application for our ADU rental from an extremely well qualified applicant.

So if each unit (half duplex) were owned by two owners then bought both units by one person, that won't qualify.

@Yonah Weiss I do qualify as a real estate professional.  

If you are not paying by cash, get with a Lender to discuss various types of loans that you could qualify for and the conditions associated with them.

Will the lender take into consideration potential rents when deciding the loan amount I qualify for?

I recommend that you work with a qualified tax professional.

Just be sure you can qualify for a HELOC before you tie up the cash in an investment.2.

And depending on the price you qualify for (and the price you feel comfortable with -- not always the same thing), then you could look for a home with a basement apartment or carriage house that you can Airbnb on the side.

They are giving tax incentives if you qualify.

The closing costs for FHA are out of this world so I wanted to go conventional for a few reasons Smoother closeI know I can qualify for the mortgage amount if I can burrow money to put down and eventually give back of course :)Stronger deal than FHA ___________________Rents $2495Unit 1- $895Unit 2- $750Unit 3- Vacant Unit 4- $850Expenses Property Taxes : $245/moInsurance : $227/moVacancy : 5% (extremely strong rental area)PM: 7% ($171.50)Lawn care: $50/moReserves : $100/moCap ex: $100/MO (very well taken care of stainless steel throughout, roof 5 years old, new paint, HVAC 5-6 years old)Expenses $893.50(Income) Rent - expenses =  (NOI) $1476.75Mortgage- $969 (With bridge loan or other burrowed money 30% down (87k) 70%LTVNOI - Mortgage = Cashflow ($507.50)Bridge loan payment - $580/MO87k at 8% 2-3 year balloon -$72.51 cashflow with (bridge loan)$507.59 cashflow without bridge loanKeep in mind I did this for only 3 units, I will be owner occupying this property or should I not?!