Here is the layout,, Main house has 3 units and there is a stand alone cedar log cabin 920 sq ft. (4 units total - 2 separate dwellings) There is also a two level garage that is attached to the main house.

Single Family Dwelling / detached house.Not FHA.There are a few portfolio lenders offering up to 95%. 

City records says it is 2 single family dwellings that is why there is only 2 electric meters instead of 4. 

See item #3 for where I think much of the shortfall is.3) Somewhat related to item #2, I filled out a spread sheet to determine cap expense numbers and what I determined is that investors in small number of unit dwellings are virtually universally under estimating cap expenses.  

Tom Herman I am not a CPA,but I am pretty sure you cannot buy a residential dwelling and right it off as a business expense.

This class includes any property that is a rental building or structure (including a mobile home) for which 80% or more of the gross rental income for the tax year is from dwelling units.

Also, do those who buy a property then build an adjacent dwelling need to consult an attorney before doing so to make sure the structure is legal?

Granted, it's a lot cleaner deal if you go through them and, personally, I feel guilty buying an occupied dwelling at a tax sale, but still, plenty of folks do it, so I was just wondering. 

Right now, for one 4-plex, I have been quoted: Dwelling Coverage: $345,000 (no personal property coverage)Liability: $300,000Deductible: $1000Annual premium: $1038Is this enough coverage?  

My husband & I are in the beginning stages of purchasing and converting a SFH in SF to include an accessory dwelling unit.