Insurance is expensive, there is a lot of extra maintenance like painting or electric in common areas that don't apply as much with smaller units. 

INstead of just saying "no" we asked them to check with their credit card company if they offer travel insurance yada yada.. we got a 5 star review form them without giving a refund.

The most likely options are exchanging:Life insurance for life insuranceLife insurance for endowmentLife insurance for non-qualified annuityPersonally, I would first determine what type of exchange you want to do. 

Private mortgage insurance i believe is not charged on va loans.  

You will have to gather more accurate operating costs (vacancy loss, taxes, utilities, insurance, mgmt fees, maintenance, HOA) to best determine potential future performance.

Insurance costs have been crushing cashflow on a lot of rentals as well - I've seen HOI quotes on $200k-300k houses come in as much as $200.00/month over expectations.

When vetting contractors, check if they’re licensed and insured, ask for at least 3 references and call them, and get detailed written estimates and timelines.

If was originated as owner occupied in the past and no longer is owner, if you have change of name on deed or insurance, if impound had a dispute, claims - are a couple reasons why the servicing changes.

Insurance- need a broker.PM- farm out or you better be good at process management. 

Plus I didn't include the Taxes and insurance for an ADU.IMO, it makes sense if you have the right sized property and a willing to think long-term.