You need to avoid certain high risk features, which include balloon payments within 5 years, excessive fees, validate that the borrower has the ability to repay the loan, make sure they are likely to repay the loan based on their credit history, excessive late fees, long loan terms, etc, etc. 

I feel like marking up repairs is paying twice.

I have a feeling Florida will catch up soon after these last storms. 

I feel like this may be the best opportunity for house hackers as there will be some early adopters who capitalize on it because you can basically turn a single into a multi.

Now as I stated I'm not a agent but I do feel confident in this here friend. 

That cost is for 17-18 piers - this was consistent between the 4 contractors we got bids form and we are waiting on a response from the engineer about how many he feels are necessary.  

Hi Shruti,That sounds like my type of REI investing, feel free to add me to your Network would love to talk shop some time or help in any way.

The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

And I feel like I got took advantage of.

Mostly a single ADU added in a single family zone area will add less value than the cost of the hands on addition.Depending on the financing my underwriting with a high LTV (80% LTV) for $200k would be cash neutral at a rent point at about $2200 when allocating for all expenses without including any land value.