I ran the numbers, negotiated a price decrease, and then performed inspections and purchased this package with cash.

I ran the numbers, negotiated a price decrease, and then performed inspections and purchased this package with cash.

It still would not alleviate the other issues with an ADU addition such as revenue out long (often many months) before any incoming revenue, the worse financing associated with the ADU, that it likely makes your primary a rent controlled unit, that it detracts from the primary even if it is just yard, that adding an ADU addition is work (likely more work than a BRRRR with much lower returns), etcCan you post the valuation you receive when you receive the appraisal?

All of my tenants are long term tenants and my property is managed by a property management company.

You can hypothecate collateral from one person/entity for use by another person/entity, but you might want to borrow the money as a home equity loan (fixed payments and term...one time funding) or a home equity line of credit (HELOC).

Long story short, I am from a small town in a rural area.

So with population growth of 50,000/yr forecast to come in for the next 5 yrs, and only 70,000 new units being delivered, we are buying for a long-term hold based on the future fundamentals of the market.  

If you only knew… How long it took me to achieve this (10 years+) and how much work it was… Quite frankly, you wouldn’t be impressed.

If I were to do so, I'd definitely look for small multi-family as opposed to SFRs, unless you're wanting to create a short-term rental(STR). 

Given that he's got a long history in business but is struggling to cover $30k in Op-ex and marketing spend, my guess is that this is either not very well managed or is in distress.