Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Are they handling most of the interior design and finish selection, i.e. picking out the white oak flooring and designing the custom built-ins in the study?

In fact it may actually complicate litigation in the event a claim were to arise while adding additional insurance expenses to your real estate operation.To explain why this is the case I’m going to ask one very simple question: In the event a tenant dispute, premises liability, or any other claim were to arise, what prevents the Plaintiff’s attorney from merely listing your wife who it seems is the property deed holder in your fact pattern as a Defendant?

If you had to pick one state with the highest change of exploding insurance premiums over what they are now, other than maybe CA, it's Florida.

@Jacob NevarezTo make a house hack deal, analyze properties for zoning issues, rental restrictions, deferred maintenance, neighborhood trends, overestimated rents, flood zones, and insurance costs.

Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

Also, lenders usually require a licensed contractor, bond and insurance. 

All to create a fantastic learning experience, and give professional customer service.

We have been able to rent it out with zero vacancies for $3,300 month, with the mortgage, property taxes, insurance and other expenses totaling ~$2,900.

The insurance company sent us a letter telling us they will be dropping us for that reason as well.