You could pull some cash out to do the renovations and then refinance on the ARV once its done in 6 months and take out more cash to buy another investment home or rent that one out and buy a New primary home.If you have any questions on the steps or the process feel free to reach out or send me an email. 

ADUs implies there is a residential building to be an accessory to, but inn my market the accessories can be overwhelming to the primary structure.  

Hello everyone,I'm currently in the process of buying my primary residence, and I could use some advice.

We bought it with a HELOC on my mom's primary residence for the first $40k, then hired a contractor for demolition and major renovations, did cosmetics ourselves and used more heloc money totaling $60,000. 1 year later we listed it on VRBO and AIRBNB and refinanced the $100000 into a fixed rate mortgage.

Here's my primary reasons:Expenses disproportionately impact lower rent collecting properties For illustration purposes compare two identically designed 1+1 duplexes in the same market.  

A lot of the time, the HML 2nd secured by the high equity primary residence would end up getting paid off in short order with via a HELOC, so there'd have to be points in it upfront for the HML for it to make sense.

I spoke with two lenders who they suggested and the lender I normally work with and I could not qualify with my primary home and rentals.

But how about any explanation as to why all the cloak and dagger. 

Although some investors don't have LLCs so it would be difficult to tell if it's owned by a primary homeowner vs an investor.

Borrow the money interest free and compound onAs always DYOR and talk with your CPA.Melanie:  Yours is a good explanation.