Check your state laws on tenant abandonment - then follow them.You can choose to be more aggressive, but make sure you understand the risks!

I think it likely an appraiser will value your duplex with 2 ADUs via comps with quads, but recognize there is some risk assuming this.  

Whie DOS lender risk may or may not be high, being ininsured is... well, enjoy your 'asset protection'.

I was a commercial lender for over 20 years and hotels are high risk / special use for most banks.

For most investors, purchasing a room condo makes no sense due to all of the associated human element risks.

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

There's no one right answer for everyone since we all have different financial situations and risk tolerances.  

You will pay for the higher risk with higher rates and origination fees but if the deal makes sense then congrats.

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

Hard to beat for zero risk.