As of right now, there are 3 existing permitted structures: main house, detached garage in front (600 sq ft), and huge 2-story detached storage unit in back (2400 sq ft).

Also there is a huge difference in Net worth in real estate assets and other assets.

I would think of this problem differently: I might encourage them to explore ADUs... this would give them an additional stream of income and would likely only require a relatively small chunk of money in their savings (relative to the total cost).If they could partner with someone that has experience building and/or flipping (to qualify for the construction loan), then cash them out with a 30-yr DSCR loan (and use that as the builder's profit), then they could rent the property and enjoy the cash-flow.

Or, a place where lots of new houses are being built might give you an indication that its an opportunity zone or in high demand.Smart Steps to TakeLook Back in Time: Use Google Maps to flip through images from different years to see how things have changed on and around the property.Spot the Signs: Keep an eye out for things like construction activity, nearby abandoned areas, traffic velocity to understand how things have developed over time.Predict the Future: Knowing what’s happened before can help you guess what might happen next.

Those are two different specialties.

Make sure the numbers work and look for off market properties or different booking strategies such as mid term rentals or short term rentals. 

Hey Mike, ever market is different.

Main goal is minimizing risk with it being our first property but was able to obtain the house for 40+% less than listing price due to our cash offer and able to close ASAP.  

That being said on a $50k line of credit, the payment difference is about $40/mo at full draw.

To get a second opinion, I reached out to a different firm, explained the situation, and they gave me the same answer.