Ya, I shouldn't have asked for A under 100K which shows that I am unaware of this market and just starting my research.

Also, if someone in my dads case surprises you, you must be unaware of the amount of people in pre-foreclosure across the nation.

The insurance company should not be able to deny any subsequent claim on that converted garage, as you were not the one who "built" it, and you could claim that at the time of purchase you were unaware of this issue (unless you were notified in writing on the seller's disclosure form) but it wouldn't hurt to try to hire either a structural engineer or someone from the county to inspect to ensure that it meet's building code.

@Jonathan Hudak, has your wife been encouraging of your "interest in RE investing for a few years" (or, was she unaware of your interest)? 

I know it's a vague question, and there might be variables involved that I'm likely unaware of.

Sounds like a healthy number if you are unaware of the separate Reserve Funding needs.

I guess my greatest beef with most gurus (not all, some are actually honest and straightforward, and even offer marginally beneficial advice) is the following1- they’re dishonest in numerous ways2- completing their training in no way qualifies the student to earn money or even perform competently in real property field3- the techniques they teach are often harmful to the people their students deal with4- they unleash a horde of unprepared, unqualified, unknowledgeable, misguided and unaware newbies on an unsuspecting pool of desperate homeowners5- they sell the song that all formal education is a waste of time and money6- they never provide any audited proof that they have been successful in real estate investing7- they encourage people to pay for a mentorship plan they can’t afford by increasing the limit on their credit cards8- they create falsified accounts to post how great their program is9- their programs are packaged by professional seminar companies out of Provo, Utah or Las Vegas, Nevada10- they disparage people who have spent years accumulating the knowledge, experience and capital necessary to be successful in real estate11- SOME gurus teach techniques which are unethical, immoral and even illegal. 

Most will never become aware and those that do will often not say anything because of the embarrassment they feel for telling their friend how awesome it was only to find out they took a huge loss they were unaware of.

Jay, I'm aware that you have a finance company of some sorts, I assume in compliance, I meant those who use the term obviously have motivations to do so or they simply are unaware.