Note also that your mortgage company will be a named insured on your insurance coverage, so if/when you do this, they will get notified that your personal insurance coverage is no longer in effect, which can trigger anything from expensive lender-placed insurance coverage to the due on sale clause in your mortgage. 

If I do a cash out refi to pay for the ADU build out (say $300k build cost), and it increases my monthly mortgage payment to $4000, I’m thinking it makes sense to pull the trigger.

You need to look at a bunch of properties before you should pull the trigger on one. 

I was 21 when I pulled the trigger to buy my 1st property and successfully qualified for a mortgage at the best rate. 

How do I insure the property without triggering a due clause or having to refinance it?

In my area there has been enough supply that I can find/get a deal on market, I just haven't pulled the trigger yet, even though there has be ~3 in the last month that would have been decent deals, on market. 

It retains the same assets, it retains the same owners, it merely changes its election for taxation, so this is a non taxable event triggering neither gain nor loss. 

This may trigger déjà vu for those who watched the Austin market in Q4 of 2020 as inventory diminished and demand for housing only increased.

I have been learning this craft for about a year and I feel like I'm ready to pull the trigger on my first deal. 

I have been learning this craft for about a year and I feel like I'm ready to pull the trigger on my first dealIf you feel compelled to reach out to me drop a comment down below with your tips.