I don't have all of the details regarding frequency but it sounds like you intend to flip the property when you purchase it. 

We are experiencing a decline in rental prices both for annual and short-term rentals.

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.

I would use the long term strategy as the exit strategy since str laws are stricter. 

But we do want the option to use it as a short term rental in the future.Do I need to go the ADU route - separate address, utilities, etc?

I am also considering investing in short-term rental properties on the West Coast.

Often the folks doing this strategy are ambitious, and not just in terms of real estate, but otherwise too.

Purchase price: $376,000 Cash invested: $20,000 House hack owner-occupied investment turned to long-term hold.

It was during our first deal that I realized a term sheet is not set in stone.

., here's what to know:Legal Framework: Commercial lease options are governed primarily by contract law and the terms agreed upon between the landlord (lessor) and tenant (lessee).