It is a material defect and failure to disclose could get you sued at the end. 

Does anyone have experience, successes, or failures they learned from, while building attached ADUs on their property, that they can share?

Success takes work and a lot of failure, but you cannot attain success without failure! 

It would involve the following test.(1) whether the company was adequately capitalized for the undertaking; (2) whether the LLC was solvent; (3) whether LLC formalities were observed; (4) whether the dominant member(s) siphoned company funds; and (5) whether, in general, the company simply functioned as a façade for the dominant member(s).The failure of a single element of the test is generally not considered enough to justify piercing the corporate veil.

So many of you are doing such incredible things, and I’m learning so much from your sharing of not only your successes but your failures too!

In short, they look at their failures and say, "These criteria didn't work, so we want to avoid lending to people with 'those' criteria."  

Fast forward to 2024...I closed on the latest rental 12/28/23 with my credit union after a preferred lender on this site let me down twice....they admitted their failure in the deals... but still cost me thousands of due diligence funds.

Those who find success do so only because they refused to let the failures stop them.Literally nothing else matters, if you really want it, nothing will stop you.

That said, to Nathan’s point this is an extremely high failure rate business as only 13% of agents succeed after the first four years.You have a family so you gotta keep the food on the table for them while trying to make it as a solo agent.My biggest takeaways for you:1) This is a business.

Get in, don’t fear failure, expect to learn, and pivot as needed.