This may be able to work if the ADUs can be added at a low enough cost that the NOI and cap rate provides a value high enough to justify the effort and risk.  

To answer your question on potential assets that are applicable for bonus depreciation, here are a couple articles I wrote with examples.https://www.biggerpockets.com/...https://www.biggerpockets.com/...If you have further questions, please feel free to reach out!

Looking for advice/strategy from like-minded, anti-risk, I want to maximize cash flow type folks.

And it may be worth it if paying off the other loan frees up significant cash flow in reduced mortgage payment.2.

@Tim Porsche- give me a shout when you're free.

Again, I sold my company so I don't have any current projects and plenty free time to do this myself.

I'm local in Grand Rapids as well so feel free to shoot me any questions you might have and I'll help you any way I can.

If you are not already working with a Qualified Intermediary on this, I'd be happy to give you a free consult to walk you through the details of your case. 

The builder will need to be approved by the Bank/Lender or the bank/lender can provide you an already approved builder they have used before in that County.Once the builder is approved the Bank/Lender will have a initial meeting and set up an agreed upon draw phase based on the work that will be completed in phases.Best thing to do is have a conversation with a seasoned Banker or Loan officer to start an application and set up step by step plan.Feel free to reach out if you have any questions I am always happy to help and talk REI.

CPAs might not always be proactive in asserting their value in the initial structuring process, leading to their exclusion from early discussions.However, recognizing the importance of CPAs in optimizing tax efficiency, mitigating risks, and ensuring financial compliance, it's beneficial for GPs and their legal teams to involve CPAs from the outset.