I'm purchasing the property from Fannie Mae, so there are no disclosures and a general lack of information about the property's history.From what I'm reading on this thread, I need to do at least 2 of the following in order to rent the 3rd:1.)

Plus, it can take 30 days or more to get the deed. 

There will be equity(but not a lot), and cashflow, when the ADU is finished, but there doesn't seem to be any construction loan options that take 2nd position.

I have a lot to learn!!!

If the city believes the unit was rented in the past, they will force you to legalize it as they no longer offer demolition permits and San Francisco's ultimate goal is to increase housing stock.On a side note, you can read more about TICs as an investment strategy by searching the BP forums.

Its more than the $4,000 for small claims court.

Happy to answer more questions if you have doubts.

This increase is partly due to fraudulent insurance claims and the aftermath of the Surfside collapse, which have made insurers more cautious.

In other words, will my line of credit be limited by the old furnace by more than what a new one might cost? 

This is a great place to learn, just like everything on the internet just do not believe everything you read and if it seems too good to be true it probably is.