I have a spreadsheet of how profitable I am going to be with the deal and these are the numbers: 245k purchase price, 20% down (49k) 7.2% interest giving me about $1,330 payments, looking at neighboring rentals with the same layout and interior I can potentially rent it for $2,200 hopefully but I expect the worst. 

However, the higher your risks too (remember the two main risks I outlined above?)!

To make the best choice, consider your time commitment, risk tolerance, and do some research on rental rates in your target area.

The proposed changes would allow a duplex, triplex, or fourplex to be a (P) Permitted use in all single-family zoning districts: With Reno's significant land constraints and overall lack of inventory, I believe ADU's could potentially provide more affordable housing for tenants while allowing investors to be more creative with their properties. 

Insurance companies are very unlikely as their risk profile has to be very very low. 

Got it, I guess it depends on what you perceive as the greater risk, property damage or rent collection.

I have a potential opportunity but all the learning courses/modules I can find don't really touch upon this (for good reason maybe). 

With that said, they will unfortunately have to only sell 1 relinquished and purchase 1 replacement to avoid the risk of FIRPTA  :-(Do they have to submit anything to the IRS when the relinquished property is under contract?

As for investment financing, you can use private/hard money funding that would typically finance 10-20% of the purchase price and most/all of you rehab.As for your first question, the amount of leverage should be in accordance to your risk tolerance. 

You can also browse real estate platforms like Zillow or Realtor.com for potential listings in your desired area.