The Bankruptcy court analyzed the Alaska statute and found that there was very clear legislative intent by the Alaska legislature and that indeed the purpose of the statute was to seize all control of the determination of transfers.

So my new proposal to her is to start out with a cheaper single family home ($26000) to get our feet wet and learn more about how it works before getting into higher priced multifamily properties.

I am a little confused by the proposed financing section - are they proposing seller financing?

I have an issue with one of the terms in the proposal regarding limiting liability: "Owner agrees to limit the liability of --------------. and its employees and agents to the Owner and to contractors and subcontractors on the project, for claims in contract, tort or warranty to the sum of the amount paid for services or $ 20,000.00 which ever is higher.

I'm not sure a new proposed lease, even though it's clearly stated that there is a new rent amount, would hold up in court as qualifying as proper notice. 

I'll work the balloon option into my proposal.

But there is a currently a piece of legislation making progress that I've read would require cities/counties to have an amnesty program for units built before the ADU rules were passed (and many municipalities already have this in place).

I propose that you focus on one strategy/path of all those you listed, find the repeatable thing that you can turn into a business which will then grow and support you and enable you to quit your other job.Check out The One Thing, see if that helps.

We also take into account the proposed new payment. 

I've networked with an experienced flipper who found the deal and proposes I finance the job, he does most of the work and manages the subs and I take up the painting of the house and lend a hand with some labor. 50/50 split on the exit.