The tenant's insurance policy should name you as "additional insured" so that any lawsuit against them would also protect you without having to file a claim with your own insurance provider.

She genuinely cared about my situation and worked hard to ensure that I got the best possible outcome.From the minute I hired her, she was 1000% dedicated to analyzing every single detail and protecting my interests.

The main players in this space are Guidance Residential and UIF, but it turns out that they may just be purchasing a Freddie/Fannie loan on the back end to finance the deal and then structure it differently for the buyer - which isn't in accordance with their religious rules. 

When you are a lender, how do you provide protection for yourself so you don't lose your money?

If insurance doesn't protect the tenant, then you should at least forgive them any rent charges for the duration.

However, once you move out and rent both units, forming an LLC might be worth looking into for liability protection.2️⃣ Zoning concerns?

By the way AB 2533 (Carrillo) – Unpermitted ADUs extends the protection of existing (not newly built) unpermitted safe units of SB13.  

She genuinely cared about my situation and worked hard to ensure that I got the best possible outcome.From the minute I hired her, she was 1000% dedicated to analyzing every single detail and protecting my interests.

DSCR Loans only available when property is fully finished and turnkey, however you might want to look into a lender that offers ground-up construction loans and DSCR.Also - be careful around the modular home / quick property types since these mortgage loans typically have to be secured by foundational real estate, so anything that can be moved or not fully foundational is probably a no-go (can't foreclose/protect the investment as a lender)

You may also want to set some keywords around "agent" and "lender" for that market to get to know who the players are in the space that are involved in the community.