This means you are doing it strictly for the cash flow.If it were me, I would go the ADU route, Rents could be comparable to the condo without the HOA dues (yes higher Cap-Ex but those are long term expenses), and with everything on one property, things are just easier to manage (one mortgage, one property tax bill, one insurance, etc.). 

Today, let's discuss property tax assessments.

capital gains tax, seller commissions , other fees, etc?

Another thing to check when running your numbers is the POTENTIAL taxes on the property.

They carry forward but would be much stronger from a tax planning perspective if they were used to offset active income. 

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The accounting aspect is a an additional thought I hadn't heard before.I know some people have used this strategy in an attempt to avoid triggering a re-evaluation of property taxes.  

In a bid to get people into these homes and paying property taxes, the state of Arizona rolled out a plan for active duty members that paid 22% down on any house in the state that had previously been lived in.

If you owe 80k on the hard money loan and the home appraises for 100k then your loan to value is 80% and you have 20% equity. 

I do the math to figure out these ratios for each applicant which is harder than you think sometimes with people working multiple gig type jobs with inconsistent income because then you also need their tax return to calculate factor their expenses in.