The topic of tenants using fake id online is concerning and poses potential risks.

I would read the Actual subordination agreement online myself though.

I have State farms on my main house & attached ADU, but since they are NOT issuing new policies in California, I have been unable to find an INS company willing to just provide INS for my rental.

I think the value from Toby is the combinations of that he and his partners who understands tax, law and actively participate the things that he/they said.What needs to make sense is if the value they provide offset their cost and if they can really deliver the end result as planned.   

Renter's insurance ensures that if something happens to the unit that renders it uninhabitable that they have a policy in place to provide financial relief for relocating.

This isn't always as simple as it sounds, but could provide some additional insight.

Providing a return and having a paper loss is fairly typical. 36% is interesting though...

So I would need a good interest rate and provide upgrades that would yield positive ARV along with pay down and appreciation to provide 20% equity for a refinance?

It all depends on the market where you are, so just do a search online at what is for sale. 

I love more than anything that you see the value in providing housing and caring for your investment, however timing is everything.Once the tenants are out GO FOR IT!