LTRs offer steady income with less day-to-day management, potentially appealing in a market with limited options, yet may yield lower returns and pose risks of wear and tear.

I would weigh those two options out and see what costs less overall between an entire new loan and or the blended rate of the two.

You will also get a taste of property management and learn the ropes as far as tenant relations, contracts and screening.Another excellent strategy that I feel is the most powerful tool you can use in today's market is to purchase this home with an Assumable Loan! 

DSCR is a good option here.

If you want to discuss the options you're considering in more details, please feel free to message me!

I emailed the main address and asked about a license number and they responded this, "Unlike other individual HML we're not limited to an NMLS because we offer a nationwide lending option."

I was going to pivot this conversation at some point on how to continue investing in Huntsville with a low risk, yet still cash flowing option.

If not, is getting am umbrella insurance policy on the DADU my only liability protection option and is it a good protection strategy? 

This allows for future use by you or a contractor that needs high power tools or who knows what.

That being said, we are currently exploring financing options for funding our first investment property purchase which have brough up a couple questions we cannot seem to get a straight forward answer on: 1.