Thanks Chris,I am assuming that would mean it would be difficult to have an accurate appraisal based on the fact in Los Angeles ADU,s where not typically approved unlike the easing of the current approval process.

After that you have to refinance at current rates which in a rising rate environment can put a pinch on your cash flow.

Happy investing and awesome job finding deals in this tough environment!

The 203K loan is a good strategy because it does bring a 3rd party in to verify numbers and provide information to hopefully ease your parents worries. 

But Given today’s low-rate environment, I would refi over a longer term (amortized over thirty years) pull out a substantial amount of cash, the longer amortization period would keep your payments low and you would still get a good rate (probably nowhere near the rate you are at now on the 15-year amortization though) and go reinvest in some other property(ies).

Now, if you're a full time investor, then selling it may be better.This is hard to put on a spreadsheet, but how much is the "Ease of management" and "piece of mind of knowing the property" worth to you?

Honestly though, in the current market environment it really seems that even private money isn’t hard to get.

GM's investor presentation today:https://www.gm.com/content/dam/gm/ev...set-11-30-2017"Based on our current rate of change, we expect commercial launch at SCALE in dense urban environments in 2019.""

Knowing that a lender will take in to account the rental income from purchase puts me at ease.

The great thing about M2M agreements is the ease by which you can change the terms of the agreement or even end the agreement when necessary.