I always request a Builder’s Risk Policy.My question has to do with what I need to tell the Insurance Agent in terms of how much property insurance I want.

Sometimes, when I buy a property, I am ok to have a short-term lease with the owner until they move out, but I agree that there seem to be too many variables right now that add uncertainty to the deal.Is the Title clear?

As to financing, special use permits depend on the term allowed as to secondary financing, a special use permit for a property not properly zoned does not always qualify.

Moreover, many use those terms interchangeably which makes it even more confusing. 

Now it is a single-family long-term rental.

They are typically the opposite of value adds in that they typically have a hands off cost more than the value added.Your broker is correct that Fannie/Freddie are not to use the rent from the ADU. 

They called me to see if there was anything I could do about all the parking tickets they were getting for parking in the short term parking spots. 

I understand that an advantage of note ownership is that its typically viewed as a more passive investment (no 3am toilet phone calls) and that is what attracts me to this concept. 

For a property like this, even in California, I would anticipate at least a +7% CR.Additionally, betting on appreciation is speculative and not the best approach to long-term investing.

Typically, I would reach out to an interior designer or an architect.