I live on 5 acres and am considering building a DADU to use as a short or medium term rental.

In november of 2022, I loaned private money to them for a term of 12 months.

Then it's short-term capital gain, same rates as ordinary income.

Red flags to look for are brokers offering both QM and nonQM products, such as VA and FHA loans concurrent with hard money and DSCR.At the end of the day, it really boils down to if you trust the account executive/loan officer not to misrepresent the terms for the deal.

The ac install is a one time issue but the lawnmower is long term.  

I also loan out money for EMD, double closes, and have some longer term financing available!  

We finally came to terms at the end of last week so he hasn't had much time to get me added and we were going to go ahead and start asap.

30+ days is what's referred to medium term rentals.

A mixed approach may be the best path forward since the inspector is coming nearly weekly, but agree long term positive reinforcement would be much more sustainable.

I don't believe anyone would want to purchase a home with negative equity nor would it make sense to be "locked in" into any deal under those terms.