I have heard from multiple sources that legislators and real estate commissions are working on shutting it down or at least making it more difficult.

Hey BiggerPockets family,I was just approved for an owner occupant, Fannie Mae, 5% down with a purchase price of $1.3 million for a 4plex in the Phoenix Metro of ArizonaMy middle FICO credit score is 759My current DTI debt to income ratio is 30%I have enough down payment, closing costs for the subject property, and enough liquid reserves for all 10 of my apartment buildings totaling 45 units in PHX Metro AZ my mortgage lender quoted me with a rate at 8.125% with me paying 0.156 points totaling $1,920My question is,does this 8.125% interest rate sound reasonable for an owner-occupied fourplex 5% down Fannie Mae conventional loan as of March 27th, 2024, at 1700 hours?

You should check out the 2020 state ADU legislation, but off the top of my head I recall two ADUs for 2-4 unit properties and a max quantity of attached ADUs equal to 25% of existing units for 5+ units.

I recommend you and your partner sit down and put pencil to paper. 

Depending on the lending situation you may need to make a larger down payment to satisfy that part of the rule.

Write it off in your head as a lesson learned on who not to call.  

She put minimal down and utilized some state assistance to offset closing costs.

Also a big one - on your condo STR policy make sure to get coverage assessments that may come down from the HOA board.

@Marc Shin  I have ten duplexes, with four of them being up/down units. 

After cooling down, I thought about it and decided to share the experience with others so that collectively we are better prepared to address these types of responses and determine how best to respond to them.