SFH with ADU will not be valued via an income approach if the buyer is using conventional financing.My view is that Bay Ho likely does not have enough ADU comps and an ADU addition will not add as much as a hands off ADU garage conversion addition. 

We got approved for a conventional loan but don't have the 20% down we need for an investment property.

We have a lot of people moving to the area and very little inventory so rents are way up.

All conventional, fha, and va loans will get sold multiple times. 

The current inventory seems to be early 1900's or homes built in the 80's.Thanks again,Nate

Conventional are less stringent. 

Dividing it up that way maps it closer to max of 1-2 week stay per year per owner (for average typical timeshare convention) and makes the ownership cost more affordable than it is now at 1/8 share, especially the more pricier listings for the multimillion dollar homes.

Is the rate typically the same as conventional loan for investment property?

we bought one for 7.2 million that the family owned for ever.. they just paid their cap gains.I would think but of course you probably have this figured but if your creating lots for inventory and selling to the public thats Ordinary income not cap gains  .. but as U point out if your in the business your depreciation will help substantially.

Conventional loans are the only conforming residential product for non-owner occupied.