I would say you should have at least had a rudimentary scope of work prior to purchase. 

If you're planning to contract out the entire rehab you should have a GC lined up prior to buying.

I use this as a positive in my green policy.

Buy, fix, convert, rent, refi - hold on for equity and repeat.This new law is permitted in all of CA and each city has its overlay issues but you will have to research it.http://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtmlhttps://static1.squarespace.com/static/58e4e9705016e194dd5cdc43/t/59b33bc749fc2b50d07ec8ed/1504918476849/09-05+_+ADU+Booklet.pdfKeep us posted

I've also learned that it's a good idea to take out a general liability policy for the LLC in order to reinforce the validity of the entity and the liability protections it provides.

@Mitchell Litam , the existing lease runs with the property until it ends, however make sure to read your state's landlord tenant laws, so you know how you can make changes once it comes up for renewal, how much notice you have to give them, etc.Water/electric bills in their names is a matter for their current lease and your utility company's policies.

In most standard policies the insurance company will provide an additional 10% of the dwelling amount for "other structures".

Hi all,  Is it possible to house hack and get a rental policy for house hacking and not lose homestead exemption?

The second pillar is a good insurance policy as that cover the majority of your exposure.

Once you have some assets to protect you may want to think about getting an LLC and/or a good liability insurance policy.