I was going to pivot this conversation at some point on how to continue investing in Huntsville with a low risk, yet still cash flowing option.

If not, is getting am umbrella insurance policy on the DADU my only liability protection option and is it a good protection strategy? 

For better or worse, 1031 seriously constrains their investing options, even for real estate. 

That being said, we are currently exploring financing options for funding our first investment property purchase which have brough up a couple questions we cannot seem to get a straight forward answer on: 1.

It's wise to consult with a real estate CPA who specializes in taxes.They can advise on capital gains taxes, potential exclusions under Section 121 if occupancy requirements are met, and the option of a Section 1031 exchange to defer capital gains by reinvesting in another property.

I'm looking for examples, options etc. 

If people refer you to someone be sure to check those references because it may be their second or third best option.

Sometimes it can pay off to use the same lender but it does not hurt to look around for other options.

So there will be some options for you to find, but the hunt for a great cashflowing property in an area where you can find cleaners/maintenance teams is a little harder. 

Looking for more creative financing options for my next rental.