I’m going to recognize this as a hard lesson learned and use it to grow my real estate investing expertise from.My question is really, what do I do with these properties now?

I would have felt honored to have been recognized for my abilities and would have helped them at no charge. 

Many investors are afraid of private utilities without recognizing how widely they’re utilized and how they’ve withstood the test of time. 

Problem for the OP is that at this point in time he has neither the knowledge to recognize a great deal, nor the experience to put together a syndication, nor the capital to invest.

Terminate this Contract by written notice to BUYER and, at SELLER’S option, either retain the Earnest Money as liquidated damages as SELLER’S sole remedy (the parties recognizing that it would be extremely difficult to ascertain the extent of actual damages caused by BUYER’S breach, and that the Earnest Money represents as fair an approximation of such actual damages as the parties can now determine) as provided in this Contract, or pursue any other remedy and damages available at law or in equity. 

An ADU would need a separate address and would legally be recognized as a separate unit by the assessor.

Let's stick together and recognize that we have substantial influence as a community.

MI does not have or recognize a Series LLC so if investing in just MI you should know this and be comfortable with this aspect of the Series LLC as it relates to being in MI and investing in MI.

I reject your attempt to suggest that we are talking about two different subjects.You'll notice also that FL does not use the term "equitable title" anywhere in this section of the law, even though it is a well recognized concept in the state.

However, it is important to recognize the risks and making a good decision, so you can move forward with confidence in your future investing.Hope this helps - this is not legal advice, simply just my personal opinion and approach to the topic.