Just make sure to do a true apples to apples comparison, and ensure quotes for utilities, foundation, trenching, site prep, permits, finishes, appliances, etc. are included.Renting out the ADU is a great strategy!

City is NOTORIOUS for requiring permits for EVERYTHING.

Here in Chicago it's typically a minimum of $40k+ a unit with 203k for a pretty basic rehab where as not pulling permits less paperwork can get it done nearly half the price out of pocket. 203k will also typically make you do $10K+/- in stuff you wouldn't normally fix up for a rental rehab. 203K can be a great option if don't have the cash for larger down payments but need to know the cost and have an experienced contractor, realtor and lender. 

Maybe the City requires a permit for ads and you didn't get one?

That’s a really good question, don’t know the answer but must be permitting through the town I would think, that’s if it is possible.

Is that also so bad when it comes to permits and inspections?

It is possible that lenders will only want you to prove the income, not the permits.

Lender would also ask for work permit/visas related paperwork.

A SDIRA is only permitted to get non-recourse loans, which are very restrictive, mostly importantly in terms of the LTV, which severely hampers BRRRRs.One thing I'm wondering about is whether, instead of forming a partnership, if I can lend the purchase and rehab funds to the other party, with the contractual agreement that I'm entitled to my share of the cash flow and equity, even after the loan is paid off.

I bought my first home and done major renovations to it as far as getting a permit demolition and reconstructing everything from the ground up.I have three questions:Do I refinance then rent or rent then refinance?