If the equity is sufficient for the down payment and qualifying for the new property there are some excellent HELOC or even fixed rate second mortgage programs available.

@Austin Nicol a good analysis by @Ty Coutts, but he left out info about Property Classes.Rising real estate prices and mortgage rates have made it all but impossible to cashflow on Class A properties, and challenging on Class B.

This was 1982 and interest rates were approaching 18%.

However, there are pros and cons to this approach:Pros:Streamlined Operations: Property managers can integrate their systems more efficiently, leading to potentially better management and guest experiences.Experience and Optimization: They might have established profiles with good ratings and reviews, which can help attract more bookings.Cons:Loss of Control: If you stop working with the property manager, you could lose access to the listing and the reviews associated with it.Dependency: Your business becomes more reliant on the property manager, which could be problematic if the relationship sours or if their service quality declines.As an experienced STR manager, you're already familiar with many aspects of managing rentals.

(I would question it since the main home is not renovated) what are the chances that they did everything right on the ADU but didn't have the funds to do the home… hmmmm doubtful Make sure they have the permits (call the city and see if they have permits on file). 

Your landlord isn't going to pay any after hours, or weekend repair rates, and so you are most likely going to have to pay for those out of your own pocket, even though it's technically not your responsibility. 

Hi Natalie, My husband is content to listen to my goals and okay with me using our mutual funds to acquire our first property, he was even okay with me continuing on this path after my first attempt at a duplex house hack fell through leaving us apartment hopping.

Only high cap rate markets?

Obviously I want the lowest interest rate possible but the way I'm looking at it is that it doesn't make much difference (from a tax standpoint) if the interest rate on that 2nd mortgage is 6% or 9% since the mortgage interest is deductible.

Hi Nicholas, thanks for the answer and let me provide more details :) The offer is to invest into new construction with 20%-30% down payment 0% interest rate loan till the end of the construction.