VA loans are the only loans that allow this, and there is no rate penalty for it no longer being your primary home.With that in mind, you could do a cash out refinance today at a higher rate than current market rates which will create profit on the loan, we can take that profit to pay for your closing costs.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

we build at or slightly below the average new build in our market where there is high absorbtion 

Is this the only market you are looking at to invest in or are you open to out of state investing as well?

I dont believe so but am not an expert on the topic - I do know that in Texas at least, it is marketed for owner occupants first and then after a certain time period they allow investors to put offers in. 

These will be markets where housing is affordable for both residents and owners.

Great point about different states and markets having different laws about using evictions as a reason for denial! 

The issue I see is that market has historical appreciation below average (not bad, but slightly poor).  

The big issue is building a single small residential unit is the most expensive residential development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Do you have any projections for what will happen with the insurance market for this year, or is it even possible to project?