As a former business owner, there are times of the month where it seems that all the cash goes out at once.

Alternatives include using a 1031 exchange to buy a new rental property or completing the exchange first and then doing a cash-out refinance to fund the ADU.

If you're dead set on that path then I would recommend getting a google meet with the person and give them as many advantages they have to using you as opposed to a property manager ex: guaranteed rent, more exposure, and less fees (use chat GPT to get a good list).I would emphasize the fact that it is much easier to get rent, and there is less risk to them in the sense of cash flow.

The investor either gets a loan or buys the property in cash.

Cash on hand: 8.

The bigger you go, the less competition you'll have and the greater your chance at some serious cash flow. 

The reason I ask is because most deals I see on Crexi or Loopnet or anywhere else create negative cash flow under 7 or even 10 year terms with 7% - 8% interest rate.

For the down payment, aiming for 5-10% down balances cash flow flexibility with homeownership. 

Do the math and see if an ADU is worth the cost and effort.https://www.biggerpockets.com/blog/rental-property-cash-flow... 

The right market for you depends on whether you prioritize cash flow (Augusta, Columbia) or long-term appreciation (Greenville, Huntsville).