The main issue is that to do the ADU you have to spend so much bringing other items up to code like electrical, plumbing, lighting (windows) and egress.

If a storm happens immediately after you replace the roof, the actual cash value is the same as replacement cost, so you've lost nothing.The only thing you would have to worry about are items you did not intend to repair

The complaint has a list of items they are suing for.

I have a property listed for sale in Goodyear, AZ and it carries a 2.25% interest rate.

Wind is one of the subtle items that Insurance companies are starting to exclude. 

The property is paid off so you have options.Based on what you’ve shared, you carrying the note sounds like a viable option.Have you considered seller financing?

The current way the studs are built is not up to code, so they have to rebuild the entire structure of the kitchen wall This is not uncommon especially when renovating an older home and when budgeting you should also carry a very heavy contingency for unknowns. 

Another struggle i have with STR is replacing small items continually which ties back to pricing.

The best place to start is with a spreadsheet that has every every cost itemized. 

Carrying on with BGC for all adults 18+!