If the OP didn't get a survey prior to closing, I suspect there may be an exception to coverage for any matter which would be disclosed by an accurate survey.

This could be an option but based on where you are you might be better of looking near a national park and rental arbitrage is going to be less feasible in those areas (but still possible). 

Depending on the financing in place on the main residence, you may be able to “sell” the parcel with desired ADU to an LLC and then “buy” it back from that LLC using the 1031, but it would no longer be an ADU unless always sold together.

My focus is on wholesaling properties in Greensboro, NC, and I am eager to learn from experienced professionals in the field.If you are a seasoned real estate wholesaler or investor in the Greensboro area, I would love to connect over a cup of coffee.

It will be an owner-to-build project as my FIL built a duplex owner around 5 years ago on an adjacent lot and is willing to assist us in our build.

@Cory BagbyHello Cory, Let me know if you up to grab a coffee.

However, based on the numbers I've reviewed, we are so far behind on housing availability right now, that this won't be an issue for the foreseeable future. 

Attorneys are not mortgage originators, but an originator could be an attorney as well.

I'll buy the coffee! 

Yea I suppose that'd be an issue for those folks.