I am not sure how I feel about the various ADU rules (or SB9) (I have mixed feelings - I like them as an RE investor and hate them as it takes choice away for lower density areas), but if I was a law maker I would explicitly state a penalty for a jurisdiction collecting fees against the bill's direction. 

@Jackson Malcolm @Troy Miller and @George Randall so if you are speaking with a lender that will only base their loan on the purchase price then I would encourage you to seek another lender. 

So if a lender is offering you a portfolio/commercial style loan that will go up to 80%, make sure you are asking the right questions - what is the prepayment penalty, how long is the loan for, how often does the interest rate adjust.  

You will see a very wide range of product offerings in terms of loan-term, amortization, recourse, interest rates, LTV,  interest-only periods, and pre-payment penalties.

Hello,Seeking ideas on techniques to purchase with cash and then refinance. 

You may have been better off taking the money out, paying the penalties, and buying it straight up.

Hey @Greg Jackson, I am looking, but I'm discontinued by flipping work in my home market and am seeking a new niche to play in. 

@Ethan ColeDon’t do it if you are getting penaltiesNot only will you pay taxes but also a 10% penalty and people don’t realize if you have a $100k and take a 10% penalty in order to make that up you need to make 11% (after tax) and that is if your retirement account was making NO money.

That's what got my wheels turning and prompted me to seek additional advice here!

The tenant screening process should be consistently applied to all potential tenants and is analogous to the underwriting that all investors have gone through when seeking a loan.