Bird in hand is better than 2 in the bush, especially when the two in the bush do not have the money.we are seeing a lot of companies now try and get seller financing and then arbitrage it to renters - similar to STR arbitrage but just arbitrage it with a loan and collect the rent and if the tenant stops paying they walk away and you are stuck with the home, the foreclosure and the subsequent eviction.

No one will watch our money more carefully than us, and have usually had some sort of arrangement (or try to) similar to what you've proposed. 

With permit, benefits are 1) get depreciation and other tax write off benefits since it’s a permitted investment purpose ADU, 2) probably better for resell value, 3) have a separate address and don’t have to bother sorting out mails for our legal tenant, etc. without permit; benefits are 1) no hassle to get the permit, 2) no permit fees, 3) no tax on rental income (as it is more like a “roommate”)Has anyone gone through a similar situation before?

Similarly, if the house sits on expansive clay on one side of the house. the clay could lift that side of the house and caused the cracking.

Does anyone do anything similar or have a better idea? 

But I hit a wall.First: Trying to find out what similar properties in the area (10 m radius) rent for, I used rentcast and rentometer for this, but they gave me two very different results.

I have learned similar ones in the past.Realistically, he doesn't even need to take you to court to get his money.

I recommend requesting a review or a new appraisal that compares your property to similar multifamily properties in the area to ensure a more accurate valuation.

Similar view on equities I stated just on Monday, and anytime margin increases with rates staying stagnant going forward we're going to have larger and larger drawdowns.

I'm in a similar situation.