Also, I won't profit right now from rental income - only my IRA will profit (yes I know it's me later in life), but I want more capital now so I can pay down my private student loan faster and repeat the process with other properties.The place is 1 mile from the beach, 2 minutes to the bus stop, 1 mile to the train, and less than 1/2 mile to a new mixed use development that will open this spring (just the 1st phase) and it's a 20 - 30 yr mixed use project. 

Would a hard money loan be better without 2 years income or another way?

I'm not sure if any local lenders will consider the property value once the ADU is complete when reviewing my loan application.

Interior renovations.Install washers and dryers.Exterior improvements including dog parks, covered picnic and grill areas, fenced yards, updated leasing centers.

If you decide not to do a DSCR loan, the second home loan is a popular option, but there are lots of drawbacks for investors as it is really a product made for regular home buyers.

We pay for the property taxes, the water and sewer bill, and usually do some sort of capital improvement to the property based on his rent each year.

My numbers are kind of tight on cash flow due to a blanket loan (had to do to pay off lots of debt/rehab). 

My goals are to learn from everyone here on a daily basis, improve my business/referral network (I’m a realtor), connect with other members in my area who may want to partner or benefit from each other’s skill sets, & ultimately become one of the many successful investors that I’ve read about.

The IRS cross-references your 1098s with claimed deductions, raising concerns if discrepancies arise.Private Lenders and Forms 1098: Private lenders are required to send Forms 1098, but only if they meet specific criteria:The private lender operates as a “trade or business,” distinguishing professional lenders from casual lenders like friends or family members.The loan is issued to an individual or a disregarded single-member LLC.The loan is a mortgage secured by real property.The annual interest paid on the mortgage was $600 or more for the previous year.The conditions leave some room for interpretation, particularly regarding the “trade or business” clause.

Regular conventional loan.