I own a single-family rental in Phoenix valued at about $450,000 and am currently close to breaking even on rent.
The property is zoned to add a 900 sq. ft. unit in the backyard, which could generate around $2,950 monthly. Estimated construction costs range from $170–$210 per sq. ft**.**, totaling roughly $200,000, plus $22,000 for permits and design.
I can access $80,000 from a business line of credit and $40,000 in savings, leaving a shortfall of about $120,000.
I recently read an article about “0% interest financing through business credit lines,” but it seems too good to be true. I’d appreciate some feedback or opinions on whether this strategy is realistic.
Here’s the Article: