Hey BiggerPockets family,I was just approved for an owner occupant, Fannie Mae, 5% down with a purchase price of $1.3 million for a 4plex in the Phoenix Metro of ArizonaMy middle FICO credit score is 759My current DTI debt to income ratio is 30%I have enough down payment, closing costs for the subject property, and enough liquid reserves for all 10 of my apartment buildings totaling 45 units in PHX Metro AZmy mortgage lender quoted me with a rate at 8.125% with me paying 0.156 points totaling $1,920My question is,does this 8.125% interest rate sound reasonable for an owner-occupied fourplex 5% down Fannie Mae conventional loan as of March 27th, 2024, at 1700 hours?

We want to understand how much loan do lendors provide for buying the land and do they have any restrictions for the loan like need to build in 1 or 2 years etc.

If going this route custom build it and reinforce it. 

Last thing you want is to get in a building you have to continuously pay to own, but make sure your goals matches what you are looking for in a building. 

I will rent out this new house, covering my mortgage payments with the rental income and steadily building equity over the years.Let me know if you are interested in doing something like this in Southern California, I have my team (brokerage, lender, architect, GC) ready to go.                          

TCOs are through your building department, and at least locally you can ask your inspector for this.

It takes time and effort to build.

However, locally some places in PA are allowing ADU, but have restrictions that if you build one for a parent or a child, that once they leave it can NOT be rented to a non-relative. 

keep building out your network and meeting people in the market you choose to invest in.Columbus, Ohio is a great market to consider if you're leaning towards appreciation.

Any ideas on how much it would cost to build out the ADU?