RE investors do this type of structure all the time (though most don't house hack).

Trying to make this as structured and organized as possible.Thank you.

With a few tweaks to the management structure, and with new leadership, I figure we can greatly increase the revenue.

But ...The first thing I observed was the replacement cost portion of the quote, was, IMO, less than what it will actually cost to demolish the remains of the existing structure, pay for any hazardous waste removal following a catastrophic loss, and actually pay to replace the property in the event of a total loss, even though I used the quote feature to increase the replacement cost value by 20% (the maximum it would allow).

Once the disaster is over, someone from the lender will verify the structure wasnt damaged and then proceed with the funding. 

We service the entire coast and consistently plan efficient physical and remote tours encompassing several cities or regions. - Property Management: No STR can be successful without quality cleaners and management.

Question: why would one choose to build an ADU when existing structures sell for less than the cost of development?

One area can show great signs but literally cross the railroad tracks and it’s a different world.Be aware of these types of physical delineation.If you are getting no demand from qualified applicants then I would say it’s not in a margin of a gentrifying neighborhood.  

It’s worth researching to see if this might be a good fit for your situation.Lease Structure and Clauses: Work with an attorney to draft a lease with strong clauses for late fees, maintenance responsibilities, and other terms to protect your interests.Target Stable Tenant Profiles: While no tenant is risk-free, targeting tenant pools that historically have more stability (e.g., retirees, dual-income households, or tenants relocating for work) may reduce risk.Stay Up to Date on Landlord-Tenant Laws: Understanding your rights and obligations can help you navigate issues more effectively if they arise.That said, if the potential risks are keeping you up at night and the financial pressure of an eviction would be too much, selling may still be the best option for peace of mind.

I have deals needing funding and want to ensure I'm structuring them in a way that's competitive and appealing to private lenders.