Even if it is not zoned for multi-family, some cities allow granny flats/guest houses/accessory dwellings in a single family zone.  

@Denzil Dwelle  congrats on the purchase.

*Rental Property / Personal UseIf you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct.

The loss of rent coverage is pretty standard on normal Dwelling Fire policies.   

I try to budget $200 a month per single family dwelling.

Thanks @Marc Middleton would you recommend me seeking a Rental Dwelling Policy?

This includes traditional dwellings, duplexes, and apartments/condos.

Also, an owner, or a managing agent or employee of an owner, is not required to be licensed to perform mold assessment or mold remediation on a residential property which is owned by that person, and which has fewer than 10 residential dwelling units.

Got somewhat familiar with AB68, AB881, SB13 (law regarding Accessory Dwelling Units) c.

Once you find out exactly how these numbers need to work from a lender you trust, one option would be to rent their townhome and rent them a temporary dwelling.