The property types that would most be affected are "soft story" dwellings and single families or small multis built on un-reinforced cripple walls.

I came across these while exploring my 1031 exchange options and thought of exploring apartments and multi-dwelling units after reading that small future plan item you had mentioned :)I posted this question on the main thread, and here's the recap.

Granted, you say a couple true things.In Jan 2017, California passed a law that prohibits local municipalities from prohibiting ADUs (additional dwelling units). 

This is exciting because I've been thinking about the same thing but more for eco-friendly, modern dwellings for lower income families.

You could possibly quietly get away with the use of that 2nd dwelling on the property as STR....

Learn the bylaw requirements for adding secondary dwelling units in your area.

I'm looking for homeowners / rental dwelling.  

I know some people say to just insure for dwelling value but it was only $11 cheaper per month!  

@Libbie Grant Investor tip for Anacortes: find a house that is zoned R2 for duplex (most all of the old homes in the desirable Old Town and around the schools and hospital) and convert a garage or basement into a legal dwelling.

We plan to insure the property under the LLC's name with a dwelling policy for replacement value, and $500,000 liability coverage, along with an umbrella policy in the LLC's name.