We do close a significant amount of properties with credit unions that finance investors with this 5% loan product, mainly in FL & AL. 

So, yes, you can do this but you have to get financing through an entity in that country. 

I am no longer eligible for traditional bank financing, so I am working on securing hard money for my next property.

This one was financed by putting 25% down around 10 years ago.

Here are some quick numbers for context.Purchase totalAfter RenosYearly RentsCap Rate (pre costs)Cap Rate (- $300 IRS, PM, INS)$62,240.00 $64,890.00 $11,760.00 18.12%12.58%$71,280.00 $71,530.00 $9,516.00 13.30%8.27%$37,116.00 $39,116.00 $10,500.00 26.84%17.64%$58,857.00 $59,857.00 $12,000.00 20.05%14.03%$49,501.00 $56,046.00 $10,740.00 19.16%12.74%All in, we're interested in any creative financing - traditional refi, portfolio loans, DSCR, HELOC.

How did you finance this deal?

Do lenders consider this a multi family and require commercial financing or is it considered a single family?

I’m finding the HOA fees getting bumped  especially in the older buildings to keep up with the new requirement.It’ll obviously take a good team to help strategize exits due to the challenging financing on the backend for the end user. 

In addition to the negative equity position, ADUs have other issues:1) the financing on an ADU is typically far worse than for initial investment property acquisition or is often not leveraged (HELOC, cash out refi, etc).

If go the trad financing route and put 20-25% down on the 1st property, then rehab it to increase the ARV, how will you have enough cash to then buy 2nd property?