We have never done an ADU/JADU but we have done a lot of rehabs (maybe a dozen, but most in class C) and right now we are rebuilding 2 units (class C) heavily burned in a fire (over $200K of damage).

I would simply turn him down citing issues with insurance, unnecessary energy usage if you cover utilities, and potential water/fire damage. 

So much Negative energy here all of you...

That portfolio darn near grows on it's own now, and I can focus my time and energy on teaching others to do the same.  

ACV - if a tree crashes into it and destroys it or it burned down tomorrow (say, a tenant leaves groceries on the stove and it gets turned on or they plug in cheap phone charger and it catches on fire - both problems we've had), can you rebuild for the $180k?

I’m an hour away mind you and at my w2 job do I fly up there thinking the whole time in my mind what the heck could it be then when I arrive I realize she let all the bulbs burn out over time and when the final tube bulb went out she called so I went to Home Depot and spent 4 bucks to get her up and running again .

But, this isn't a turn and burn situation.

I've seen my clients get burned many times by lenders who rarely do SBA loans.

It burned only a small patch of carpet and sub floor. 

I did find a contractor that offers a 1 year no interest loan which I will most likely leverage that opportunity stretching the repayment bills out over 12 months (helps improve all cash flow).I appreciate your energy and time.