If your property is zoned to allow an ADU (and this is a big IF), then ask about regulations for short term rentals. 

This means, once the property does have enough equity, you can still refi then.2 - The loan is usually very short, so this may not work as a long term rental, but ...

However, it does not always make financial sense to empty and gut the building to carry out a deep retrofit (and even when it does, that initial whooshing roar of capital flying out of your bank account can be unsettling).As of late, we have been purchasing rather, to very, unloved buildings with plans to (eventually) perform deep retrofits on many of them {where the increase in the property performance will pay-back the investment in a relatively short period (say 3 - 6 years) versus the planned hold duration (i.e. 20yrs).   

More details would definitely help to attract more eyes to the post and help solve your dilemma I think.

We use to own and manage 4 short term rentals in Phoenix and know the amount of effort it takes to operate it successfully. 

The sellers were having a hard time finding a new place to live in such short notice that I offered them ten days after closing to be able to move.

Hi, everyone! My wife and I are considering buying a live-in flip, but we probably wouldn’t plan to stay the full two years to get the capital gains tax exemption. If we buy it, make it our primary residence, and sell...

You're gonna need a good-sized home to fit 8, but it shouldn't be a problem to find something suitable in a short amount of time.

Personally, I'm not such a fan of books, blogs or podcasts that have quite deceptive titles suggesting that creating substantial wealth and financial freedom is attainable in a short amount of time.

If you have a cookie cutter, two page note, short form deed of trust, and no servicing comments or pay histories to show your buyers, you won't be able to get as much for your note.