It's great to be prepared and have your duck in a row but we don't even start discussing eviction until they are at least a month late or behind by 1.5 months of rent. 25% of the time tenants are going to be late and about 10% are going to be late consistently.

You could structure the deal with seller financing to bridge the gap.Possible offer structure:-Purchase Price: $170K - closer to actual value-Down Payment: Low or zero down to conserve cash-Interest Rate: 3%-5% - or better yet, 0% if the seller will agree-Monthly Payments: Interest-only or deferred until the sale-Balloon Payment: Full payoff in two years when you sellIf he wants $200K, you can still make an offer of:-$170K purchase price + $30K as a second lien due at closing-Seller carries $170K at a low interest rateHe would feel closer to his number, but you still keep within reasonable investment limits.2.

Most PM's here charge 15-20%, most are 20, but will depend on what services they offer.

I wouldn't have any interest in buying something like this to hold since it would be so far negative cash flow wise on a monthly basis.

Now I have a HELOC at 7 to 8% approximately $1900-$2000 a month.

In short - if you aren't licensed to do the work -  your services aren't going to satisfy the permitting agency.  

The loan is still on my name, but is being paid off every month by my buyer.

It seems like not many accounts can be joint or if they are, there's monthly fees.

If the tenant stays, they will be on a month-to-month lease, which requires a 30-day notice.

There are companies such as Cover that offers a full service ADU deliverable from design through construction completion.