I have read the city’s guide https://www.slcdocs.com/Planning/Guides/ADU_handbook.pdf but I still have questions.1. can tell that till require the owner to live there for the ADU. 1a is it for permanent residency or is it justified if it is a second home that I would use occasionally?

Look at the overall numbers if you were to hold something 10 years and that will change your mind real quick. 

If you have a contractor who is good and can get it done quick and you dont have to micromanage then that worth 5% or 15% more to me

Hoping to place tenants on the first floor as close to move in as possible (1st floor unit is modern and doesn't need any work), then quickly make the repairs on the 1 bedroom unit to update and turn into a 2 bedroom and get that rented as soon as that is done.  

Phase 1 was quickly leasing up small office space.

At the same time, I want to complete the project quickly to sell the property and move forward.

Towards the end of November, we got professional photos up of the reno and used the 20% new listing promo and quickly got 3 bookings for December in a two week period. 

Throw in a few nice touches, like coffee or board games, to wow your guests.Keep extra linens, cleaning supplies, and essentials like toilet paper handy so turnovers are quick and easy.

BP-Published DSCR Guide!

It's not a get rich quick scheme, it's a lot of active work and I would have 5 yrs in my head at a minimum before you truly become established and stabilized.