That is TERRIBLE advise!

That's why if I ever get asked about renting basements, I always advise to be extra cautious when screening tenants. 

I normally advise my clients in Florida in this situation to:1) give proper notice of non-renewal, and at the same time,2) give notice to pay.If tenant doesn't pay within the notice period, file eviction, and the non-renewal notice serves as a "back stop", if you will, in the eviction, in case you needed to amend the complaint to add that count to the action. 

These loans are amortized over 30 to 35 years, and it is advisable to approach DUS lenders directly to avoid additional broker fees.➡️ HUD loans have slightly better terms than agency loans but require a longer approval process of around 6 months.

Alternatively, if your goal is strictly to find cashflow from day 1 (especially if you're coming in with a modest downpayment amount), then I would advise to focus in outer areas. 

I would call the city/town and ask general questions...wouldn't tell them you own some non-permitted ADUs.Find and attend some real estate networking events; maybe you'll meet another person who has dealt with this kind of situation.If you have the funds, you may want to talk with a local real estate attorney and see what they advise. 

Again, I recommend you speak to a landlord lawyer to get advise based on your state laws. 

I'm open to any connections or advise.

We would probably need more information from you to give any specific advise. 

For quarterly payments, that depends on what your accountant advises.