Any other factors to consider to minimize the UBIT impact? 

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This is good.Also, a little backstory:  the reason I mentioned insurance, was a developer I worked with in Colorado finished a condo complex in the early part of the 2000's, when there was a rogue lawyer whose business  model was buying a condo, tearing into the structure looking for any defects (as minimal as sheetrock screws might be spaced @ 12" instead of 8"), then going after the builder, which of course was actually the deep pockets of the builders insurance company.  

The cheapest minimal house nor for sale in SillyValley is One Million bucks, perhaps a Stanford professor could afford it, but wouldn't want to!

Currently, I have a large cash position but am looking for minimal cash down deals.

I also sort of assumed that househacking means trying to minimize the expenses.I guess it really comes down to whether she's figuring her residence/unit in the income numbers.  

If the owner wants to be paid for the vacant units, they should fill them (with any associated expenses) and then market the property.As with any rental property, there is a 'normal' vacancy factor that the seller is going to minimize and the buyer is inflate.Owners wanting to be paid based on unrealized potential is much of what we are seeing in the MF space.

Depending on the net difference between the new kitchen floor and the adjacent room, you can buy a transition piece that will minimize the appearance.

Now if someone said "Hi, Jd, this is Sarah - I was talking to Charles at XYZ industries and he indicated you were in the market for some 4G-compliant Widgets, and thought I might be able to help", I'm way more likely to listen to the sales pitch.  

Just make sure you narrow it down before you ask, to minimize that.