Additionally I want to keep reserves for small cosmetic Renovations as needed.

In addition to direct real estate, I invest fairly heavily in index funds.  

You can - 1) establish a trust for asset protection, 2) utilize the Homestead Exemption for property protection, 3) consider tenancy by the entirety for marital property (this might just be applicable to California, my home state)4) make sure you have adequate liability insurance for additional protection, 5) think about forming a business entity to shield assets, 6) and have proper estate planning for asset distribution.Seek tax and legal advice from experts in your state.

"In addition, a fee of $40 is added per month for shared utility of water, sewer, and trash."

Make sure your listing is well optimized you can also do a little tweaking to your listing daily to get on the algorithm, make sure your photos are eye catching and well arranged, you can send out your link to friends and families and ask them to add it to their wishlist.In terms of pricing you always want to start low to get some bookings and ratings then slowly increase your price.I wish you the best in your business.

Along those same lines, I recommend shifting your mindset from generating additional income to investment diversification.

I believe I am realist and not negative but .. most ADU additions are not value adds as the addition costs more than the value added.  

Also, Investors need to be prepared for and understand if there are additional costs that come with foreclosures, such as water bills, and potential fines for property upkeep.

Yes it explicitly allowed things like the term and rate, and I wrote that it should exclude anything additional which is unnecessary since I couldn't be there to read the closing docs themselves (which I assume can vary depending on what the branch leader/loan officer wants for the nonconforming loan).  

If the damages incurred exceed the SD, you can file a small claim for the remaining balance.Good luck with this process, and I hope the damages are not major.