Not looking to do anything crazy, just buy a normal deal with no significant value add and in a decent area.

The area does not have explicit rules on STRs so its a gamble with that strategy.

Meanwhile, we're putting in two new-construction 2br ADUs on the current property, plus converting the garage to another 1br ADU (it's a bigger-than-normal lot).

The pandemic fueled low interest rate boom demand has normalized, but the market is still moving.

I still normally leave 15-25% in the deal.  

My advice would be to do a cash out refinance and pull some cash out now that rates are dropping back to normal. 

I am understanding it as subtracting that from the amount I would normally give them? 

Thats not a wise gamble in most cases if there is a market change for any unknown range of factors.

I normally suggest being right smack dab in the middle with a low risk B class asset.   

I recently placed in a class a unit (almost $2k/ft value) because it is beach unit and expect higher water contact (normally class a gets real wood).Carpet in common areas in short run is cheap but long run will cost more than concrete stain or LVF.