EVERY time an investor becomes part of our database, they can not enter without having signed our very specific disclosure that outlines the criteria of the transaction and what to expect(I don't see you in our database so your not familiar with this and should not be receiving our opportunities). 

I typically do 4-10 specs per year. 

Typical costs of the ADU is >$250/ft for new construction (converting existing space is cheaper).  

You received a lot of factually incorrect information.

That said, more inventory finally coming to market will likely translate to more options for buyers and fewer bidding wars, which typically keeps outsized price growth in check.

The BRRRR is great, but typically does not go hand in hand with house hacking. 

- I realize that this maneuver will likely increase the risk of audit....curious to get a sense of how much more risk of audit I will face and does the IRS typically just audit the one year or would they dig into previous years as well?

This applies to properties used for the production of income, such as rental properties.However, if you initially declared your property as an STR (which typically falls under different tax rules), you might have been using a depreciation period of 39 years, which is common for non-residential property or property used for personal purposes.When you convert your property from STR to LTR, it's considered a change in use for tax purposes, and you would adjust your depreciation schedule accordingly.

Landlord determines the amount they want coverage for, typically the same as a traditional deposit. 

@Leo Gregoire, a typical first step after you are situated with your brokerage would be to reach out to your "sphere of influence".