Yes pretty common, minimum downpayment is generally 25% (occasionally that 20% will work) but just depends on your situation.  

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?

-Also, if it could have access if they get an easement from a neighbor, maybe there is a mutually beneficial situation where the neighbor would give an easement for access.

Quote from @Carl Rowles: An interesting situation.

We are working to help people evaluate their situation and manage properties while these court actions are in process.

I hope everyone is well, I came here because I need expert advice from you guys, let me tell you my situation: I have a investment property that i purchased 2 years ago and is valued at 65k that does not have any mortgage and that is already paid off, I want to use that property to buy another one for down payment , the question here is: What is the best way to do it. a heloc or a cashout refinance and why. your response will be appreciated :)

Additionally, I don't have the time to sift through all the legal jargon and pinpoint where they’ve breached the contract, so it's worth having a lawyer review it in my situation.

That's why the personal connection with the verbal deal and personal reputation on the line matters for me in classifying as a PML situation.

If you want more assistance than this general answer, you'll need to post more specific facts about your situation.

This is a situation where you need to run a few scenarios and see how the numbers shake out.