Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Umbrella insurance is crazy cheap for the benefit, and it already requires you max out your liability on your other covered items.

I think the above are the type of items your engineer wants you to look at.  

Back in 1978 when I was starting my real estate investing career I purchased a SFR for $55,000 (its current value) with $5,000 down and the seller carrying a 30 year mortgage at 5% interest.

I went actually on the street of the city I wanted to invest in and asked people just walking around about the city, what might rent, etc and found this method to be extremely beneficial I met some local real estate agents walking their dogs that gave me great recommendations and leads just because I asked them.The real estate agent son I met the other day has called my phone and is connecting me with a landlord that I really want to get into contact with for his building who already has tenants airbnbing at his location.I also found a Mentor (simply by asking around), which has offered to teach me all their ways, tips, tricks and so on as long as I help them stage, help them move items and so on.

It was carried out through zoom so it was very convenient- The employee that I had a meeting with was really professional and nice.

I have also added line items for common area monetering and additional appliances.

I also like to use incidental insurance as an additional layer such as Waivo to cover items.

We try to limit as much risk as possible while reducing the capital carry. 

And then the second item is - if you do take out more money, where does that leave you from a cashflow standpoint.