Contact the utility provider and get a historical average based on the last year of use.

Based on the info you provided, it seems like a no brainer to make it a rental.

Please correct me if I'm wrong.You can require them to have insurance, but you cannot require them to purchase from a specific policy provider.

They will advise you on how to proceed with your proposed ADU given your site-specific situation.For a condensed roadmap to building an ADU provided by wake county, use this link: Click Here

Homeowner insurance provides coverage for owner-occupied property.

Would it be safe to purchase a new fridge, deduct maybe 1/2 of cost to replace  current fridge door from the security deposit, provide receipt with explanation?

The regulations provide both insight and ambiguity.25% or more owner of the entity; OROne who exhibits significant control over the entity.

I like providing some guidance, it is up to you to embrace it or not.   

Also, what others have said, the personal touches on what is in your place (e.g. providing all the essentials instead of having people buy TP, coffee, shampoo, etc.) and the quality of those items (no tattered towels, stained sheets, etc.).  

Get a HELOC, which is possible but more difficult to find on a rental property, and is much easier and cheaper for an owner occupied property.What I have seen is if there's no insurance, it's treated as a lapse and insurance companies can decide not to provide coverage so did you face that in your case?