At that rent point, maintenance, cap expense, and tenant turn over will consume a lot of the rent resulting in low cash flow per unit.  

The rate of interest on policy loans for large and reputable mutual companies is always going to be competitive relative to commercial or consumer lending.

For an uneducated consumer or depending how strong their sales team is this is a very raw deal.

For consumer debt I agree.

1. pass legislation limiting what the "free market" demands2. suffer the consequences of the elimination of the "supply" demanded by consumers in the free market3. suffer the consequences of the "law of unintended consequences"4. blame "capitalism" for failure to provide what was eliminated by previous regulatory action5. pass more legislation to counter balance effects of previous legislation 

And if they have to get a new loan that can be time consuming and Boom.. the original seller gets their credit trashed waiting for the loan to get paid off ..

In terms of mitigating your risk - particularly if you buy a condo - consider a newer building, steel or masonry construction, a unit on Floor 3 or above where Flood insurance wouldn't be necessary, larger buildings where costs are spread amongst more owners, and buildings with a financially healthy HOA (track record of good management, reserves in the budget to cover large capital expenditures, etc).

The negative value with respect to the cost of building is such that it can consume years of cash flow to recover.  1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Since I don't know what I don't know, I rely on these professionals to help keep me educated, organized, and my business healthy. 

For the market to be healthy I think that rates have to remain like this for at least a couple of years...Changes in rates affect the market so much making the industry too volatile.