Following cashflow trends in emerging markets can allow you to meet your goals much quicker, even if that means getting a bit out of your comfort zone.

If you are going to live there for several years, you might see some rent growth that can assist your bottom line, but I might keep looking.

This is making some broad assumptions... you and your family keep your expenses as low as possible while saving and investing as much as possible. 

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

She wants to sell the 1/2 acre and the two wells that feed the community as her husband who passed away set it all up and maintained it,  I don't think she has been keeping up.

As I continue to grow my portfolio I’d like to continue with the because their interest rates have been the best I’ve seen and they keep their loans in house.

My questions stems from wanting to take out a 2nd mortgage to build an ADU now while rates or high or keep waiting until rates drop.

Some tenants will shape up if they see the new owner means business (paying rent on time, etc.), so it's important to enforce rental agreements when you take over. 

So, besides now protecting the floor if this tenant wants to keep using it because these free standing bags can move around, they also are noisy and can cause vibration.

This can mean additional costs for repairs and maintenance to meet these standards.Administrative Burden -> There can be significant paperwork and administrative work involved in maintaining compliance with Section 8 requirements.Please reach out to me directly if you want to go deeper into the subject, especially on the financing/loan side of things!