I own multiple single family dwellings and I just put an offer in on a 20 unit for about 700k.

@Kenneth Olsen There's a ton of HouseHackers here in WA - a combination of high-cost real estate and many cities (like Kirkland, Seattle, Tacoma, etc) having favorable accessory dwelling unit / backyard cottage laws makes this a great state for the strategy. 

Security Deposit in Regard to Fire or Casualty Damage: If the dwelling unit or premises are damaged or destroyed by fire or casualty to an extent that it is substantially impaired, the landlord must return the security deposit.

I have the opportunity to invest in a 16 unit multifamily dwelling in one of your markets as a matter of fact.

  (3) The landlord shall not recover possession of a dwelling unit except: (a) In an action for possession under subsection (2) or other civil action in which the issue of right of possession is determined;(b) When the tenant has surrendered possession of the dwelling unit to the landlord;(c) When the tenant has abandoned the dwelling unit.

. * Dwelling is a single family home * # of units is total units.Example, 4 units can be 4 SFH, 2 duplexes or 1- 4 family______________________________________________________________________ACE--Typically like maxing out on 5 or 6 unitsAcuity—12 units or 4 dwellingsAllied/Nationwide —We can take up to 8 units.American Family – Need to have auto & home along with a commercial policy in order to consider any rentals.

Check your state laws on legal limits to number of tenants per dwelling.  

Generally contents coverage, loss of use, etc, on a home owners policy are based on percentages of your Coverage A, or dwelling coverage.

The problem is that these are MFR that are fully rented, so I am in a dwell period until my next buy or when a tenant moves out. 

Researched uncovered that Accessory Dwelling Unit (ADUs) are allowed in R2.. yet seems to require a $4000 statement of occupancy.