Quote from @Rich Davis: I know there have been posts regarding the ever increasing cost of insurance.  

Each market is different but as a national average, the increasing rates have increased the inventory.

Your equity won't likely increase beyond the cost to build because there aren't a ton of ADU comps on the market yet. 

Hindsight Critique•Continue to build relationships to increase deal flow•Property manager (Mercer Hughes) is critical to completing renovations and quick tenant placement•Continue to build relationships with private lenders and personal investors•Have cash available to make quick competitive offersDid you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I guess my challenge right now is to define the strategy and balance all the factors, such as job and population growth (value increase), cashflow (demand & supply market, interest rate, property tax, maintenance cost), and risk control (insurance etc). 

if it is serious I have a couple of questions for you 1) what is the last syndication that you have seen that did not project a majority of the return from value increase?  

Our auto coverage is now at an increased level so if this happened today it likely would not result in any involvement of the umbrella policy. 

I can mark it up with a fee or by increasing the rate (or both, but I never do).

If you decide not to renew their lease or increase their rent they need a 60 day notice, and you have to notify S8 as well.Outside of those 2 exceptions your tenant should follow the lease like everyone else.

We just had a section 8 tenant where the rent increase was approved from 995 to 1295 because of shortage and market rents for similar homes.