He is also using a HELOC to pay for the turnover costs of losing his long term tenant and making it rent ready.  

@Victor HongEven if you have had multiple claims, the state will provide insurance but the cost is going to be astronomical Why can you not get insurance ?

Moreover, the typical listed home price has grown by 37.5% compared with May 2019, but the price per square foot grew by 52.7%.While the typical home for sale is listed at a similar price to last year, higher mortgage rates compared with last May still increased the monthly cost of financing 80% of the median home by roughly $158 (7.1%) compared with a year ago.

The purchase price was 395k and furnishings cost about 20k.

One must accept the fact that there will be mistakes, there will be cost paid, but in the long run, as long as one doesn't quit, and try to improve on the process every day, one will get better. 

That cost about $400K from our proceeds.

They cover too large an area and will lead to you either getting take advantage of or making a costly mistake:(Investing in the City of Deroit should actually be done block-by-block.

My preference is to actually have to separated as cost efficiently as possible, but also wouldnt mind the ADU and main house shared meters as this would save me costs on my initial construction. 

I believe alot of owners in the area are under insured especially when it comes to loss of income and rebuild costs. 

Investing with foreknowledge that property values are falling seems like a timing problem or at least a situation where my offer would be reduced to reflect this coming change.As to how much to put in as a down payment that depends more on your numbers, your risk tolerance, ability to get financing, cost of financing, etc.