Peter,That does not sound accurate based on having a Schedule E and being able to take those deductions as well as other standards.As an investor it’s not a bad thing to show more gross income which usually allows you to buy more properties with more income and a lower DTI.

Covering all bases, right?

It’s based on their purchasing power, which I know changes at 4 because 5+ we will calc DSCR to determine LTVs. 

This may be easy enough for most states and their relatively simple tax regimes, but states like California, New York, Texas, Pennsylvania, and a few others have some quirks to them.For example, California makes disregarded single-member LLCs file a tax return, pay an LLC tax four months into the tax year, and potentially pay an LLC fee six months into the tax year based on estimated gross receipts.  

DSCR loans for refinance based on the income potential of the rentals.

They are about $100 for a 3 foot base cabinet.

hello im an investor based out of central Illinois and im looking to get financing from private money lenders looking to make a passive income does anyone have any suggestions oh who or where to start??

Yes, you will be required to pay income taxes on your withdrawal based on your year-end income vs expenses.  

What this means for you s that there is a good chance that your existing SFH becomes rent controlled when the ADU is placed in service (I would like to see the law clarified on this as this practice goes against the rationale of the 15 year exclusion). the reason this is important is that any rent reduction places your base rent at that point for rent control purposes.  

I'm currently based in Phoenix, having originally moved from Washington State.