Can an SFR conversion to Condo trigger a call on my mortgage

[Ramzi Muhtadie]

Hey fellow Seattle investors,

I execute a BRRR strategy in the Seattle market coupled with a land arbitrage, whereby I purchase an SFR with a good candidate DADU lot , then condo the SFR and DADU so that I can refi or sell them separately.

To today I have completed construction 2 DADUs and just got permitted for my third.  

On the first DADU, market rates were great so when I completed the construction, I put into a condo structure and immediately refinanced and was able to get both around 3.5% as investor property condos.

my second DADU has no debt. I'm looking to put a HELOC on it, but it will need to be converted into a condo structure for that to happen based on the product that I found and like the terms of. I'm almost 3 years from construction, which is when my tax exemption on the improvements expires.

Now my question is, if I turn the SFR and DADU into legal condos, is there a risk that my original mortgage on the SFR a conventional one could be called?

Are lenders made aware when a single-family home converts into a condo?

To take it one step further, what if I sold a DADU after putting into a condo structure because then in theory the original Mortgage would have lower assets supporting it since the land of the DADU would not be encumbered by that debt anymore?

at the end of the day, it is what the owner of the debt has visibility to…. So just curious if anyone has experience in this domain.