That way you are notified if the insurance were to lapse.Talk to your insurance agent as was mentioned earlier and make sure you have sufficient liability insurance to cover all your assets if you don't already have that.

Numbers make sense for me even though the property is not the deal of all deals but its sufficient so long as i can obtain the rents im looking for. 

ALFs have long lease up times so you will need to carry the expenses during that time until the property can become self-sufficient.

However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test.

Once you know these consequences, you can determine if the cash flow is sufficient to overcome these negatives.In general, I can typically find investments that project a far better return than adding an ADU.Good luck

Also is text message and email legally sufficient for this notice?

However, the process was pretty straight forward to meeting the net worth requirements primarily because we were working with a local credit union that knew the market, had prior experience with our property manager, and our collective balance sheets were sufficient.

But I'm also partway through getting a HELOC and another private note created... hard to give an accurate answer to this question when the target is always moving.At the end of the day my primary goal is expansion at this point so I try to stay relatively close to neutral cash flow in order to grow more quickly... all the while keeping sufficient liquidity around to cover the worst scenarios I can imagine and making sure my credit / financial ratios remain healthy. 

If you want great cashflow sufficient to work with even higher interest loans look into rent by room.PadSplit.com is just getting into business in that area I believe.

I use AirDNA when starting a new property (If I do not have sufficient submarket experience, some neighborhoods here I know like the back of my hand) to figure out the ADR.