If it's in a high tax /flood area taxes and insurance could easily be 5-6k or half that then with title insurance points and closing it could make senseWhat is the breakdown ?

Taxes have to be paid, so does insurance, what about maintenance? 

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. 

If this is a terrible way to proceed, then please let me know.

You can try and fight it but does not mean you will be successfulI would also be curious to see what your property insurance looks likeFor me this is just another example that home prices are gonna eventually have to soften as between taxes, insurance and Interest rates home affordability is very challenging

What about maintenance, taxes, insurance, or setting aside funds for capex?

An investor with shallow pockets could get burned in Austin at this time.........proceed with caution.  

Here are a few things that I like about the neighborhoods in Indy compared to other states: high rent-to-home-value ratio, consistent and gradual city development, relatively low property tax and insurance cost, affordable renovation service cost.

They will advise you on how to proceed with your proposed ADU given your site-specific situation.For a condensed roadmap to building an ADU provided by wake county, use this link: Click Here

Work with your commercial lender/insurer/lawyer/personal banker and see if they know of any interested parties.4.