Prohibited transactions remain the most common source of SDIRA compliance failures.

Here are some things to keep in mind:1) Make sure you’re running truly conservative numbers - assume higher vacancies, real repair and CapEx costs, rising taxes and insurance, and rents that are realistic, not just what makes the deal look good on paper. 2) Take the time to learn local zoning, rent regulations, and code rules before you ever make an offer, especially around NYC where non-conforming or illegal units are super common and can completely derail a house hack.3) Talk to a few investor-savvy lenders early and really understand your low-down-payment options (FHA, conventional owner-occupied, grants, assistance programs) so financing doesn’t slow you down once you find a deal. 4) And finally, build relationships with an investor-friendly agent, a CPA who works with rentals, and ideally a mentor who’s just a few steps ahead of you.

The common paths I see are a local bank business loan or line of credit based on your income and property equity, a commercial value add loan if the building and the new space pencils with a stabilized pro forma, or a cash out refi or HELOC on other properties if you have them.

ADU's are not as common in Indianapolis, We work with several contractors that have some experience with this and would love to connect with you to discuss this.

There are three common approaches, but the best strategy blends them:What typically works best:- Small predictable annual increases (2–5%) Tenants expect it, it prevents large jumps, and it keeps rent closer to market over time.- Market realignment at turnovers When a tenant moves out, reset to true market value.- Context matters - If tenant is excellent then prioritize retention with reasonable increases

But to Chris's point, one of the common tactics right now is to sell a property for more than it's worth by using seller financing.

:) .Are there any strategies new investors commonly use to balance personal home upgrades with starting a rental portfolio?

You would have something in common with the attendees.  

What you’re describing is common, and it usually comes down to how the screening data is sourced and verified.Not all background checks are the same.

Also depending on if the lender sells off the loans at closing to an investor pool for new cash for more loans (common in the DSCR space), then the investor pool is asking for higher rates to buy these lower balance loans.