If it's a dwelling policy, you'll be insured for the stated amount, no more.

More than likely the residential Ladue zoning code will prohibit a secondary dwelling on a single piece of property.  

Greg, when you own a rental property (regardless if it is in your retirement account or personally) you want to make sure that you have adequate amount of liability coverage, which comes with landlord's policy in addition to dwelling coverage.

The property was overgrown with trees, by simply removing the trees and cleaning up around the farm we had almost instant equity.

While a cash flowing property is great and gives instant results, the importance is in buying good deals.

I am now talking to the insurance company and I am reading more into the dwelling insurance that we have.

As one means to try and add to units to the housing market the State of CA now allows for "Accessory Dwelling Units" (ADU's) in many places.An ADU is a secondary dwelling unit with complete independent living facilities for one or more personsand generally takes three forms: Detached: The unit is separated from the primary structure Attached: The unit is attached to the primary structure Repurposed Existing Space: Space (e.g., master bedroom) within the primary residence isconverted into an independent living unit Junior Accessory Dwelling Units: Similar to re-purposed space with various streamlining measuresThe rules around ADU's can vary from city to city but in general ADU's are allowed in many zoning districts that are zoned single-family; they are often exempt from many Planning Dept requirements for parking, open space, etc; they often have a streamlined permitting process and typically cost less than building new rent-able square footage.I am interested in getting involved in this type of investing/improvements and would very much like to connect with others who are as well.

Up Front Mortgage Insurance Premium - For most of its mortgage insurance programs, FHA collects an: Upfront mortgage insurance premium (UFMIP), and Annual insurance premium which is collected in monthly installments Mortgage Insurance Premium - For 15 year and greater than 15 years. 1.75% of purchase price Annual Insurance Premium Greater than 15 years & greater than or = 95% LTV - 0.8%Greater than 15 years & less than 95% LTV - 0.85%Less than or = 15 years & Grester than 90% LTV - 0.7%Less than or = 15 years & less than 90% LTV - 0.45%High Balance Loan Amounts Less than or = to $625,000 & less than or = to 95% LTV - 0.8%Less than or = to $625,000 & greater than 95% LTV - 0.85%Greater than $625,000 & less than or = to 95% LTV - 0.1%Greater than $625,000 & greater than 95% LTV - 0.105%INCOME—RENTAL Rental income from a borrower’s primary single family residence (boarder income) is not acceptable for qualifying.Rental Income from the subject property may be considered effective income if the subject property is a 2-4 unit dwelling.

If a renter wants to make their dwelling look prettier is it feasible to just let them have at it assuming nothing is changed that isn't reversible?  

We'd like to buy either a SFH with detached dwelling unit we can rent out or a multifamily and house hack.