May want to hold tight until things start to loosen up or the property can appreciate more. 

Hopefully as the rates and the housing market loosens so will some of these guidelines in the HML programs. from talking to hard money funds especially those who operate in more than 10 states, and 5 years of experience with underwriting teams, I'd actually disagree and say new construction is preferred to rehab due to experience level to enter the market. there's BP lenders that will do 15% LTC with 1-2 new build experience.

They loosen the guidelines last year and made it much easier to get ADUs permitted.The other major risk by not permitting is if you decide to get it permitted later on, it is likely going to be more expensive.

Laws seem to be loosening up all the time.I get your point about less things to fix assuming someone is using them.

Banks are getting tighter and may have unperforming assets, so they are looking at their portfolios and becoming more picky, for lack of a better word.When the economy is ripping, banks loosen criteria.

The market in my area is starting to loosen up a little bit.

Furthermore, when you chase yields and try to hit 1%, you typically start loosening your investment criteria to chase that yield. 

Once you have the water turned off, you can loosen the connection at the water meter and let all of the water out.

But as soon as the market starts to loosen, deal flow increases and investment sentiment is less sour, a whole new batch of people will be back on these forums and elsewhere pitching how their 12 months of loan underwriting, and a few blog posts about how you calculate cap rates, qualify them to try to raise millions in investor capital.

Denver just loosened most of their restrictions around ADU's also but they still have to have a foundation.