I have a house in san jose downtown zoned R18 (Single family house with a ADU(Accessory Dwelling Unit) - In law unit.

I ended up getting it approved rezoned and permitted to convert it into an accessory dwelling unit. once its inspected and passes i can legally rent it out

I go back outside, take some more deep breaths, then go in the opposite side of the dwelling and open more windows.

. Ownership of a multifamily property consisting of more than four dwelling units. Joint or total ownership of a property that is held in the name of a corporation or S-corporation, even if the borrower is the owner of the corporation and the financing is in the name of the corporation or S-corporation. Ownership in a timeshare. Ownership of a vacant (residential) lot. Ownership of a property that is held in the name of an LLC or partnership where the borrower(s) have an individual or combined ownership in the LLC or partnership of less than 25% and the financing is in the name of the LLC or partnership. Ownership of a manufactured home on a leasehold estate not titled as real property (chattel lien on the home).

It would be required to be zoned for a duplex or to allow for an Accessory Dwelling Unit (ADU).

If the area you are in allows 8 dwellings per acre and your area is already at 8, the city will not allow you to split that property, creating 9 units per acre.

Policies for rented dwellings can have different levels of coverage and different exclusions. 

If you want to advantage of owner-occupant financing, you'll have to occupy one of the dwellings.  

Is a Builder's Risk, vacant dwelling all I "need"?

Times that by 2 for the entire dwelling $7,020 a month.