I was able to become financially independent in 2 years with two properties.

Seems like a messy situation. 

My opinion only 2 cases make sense for the seller 1) they have few options and this presents the best means to get out if a bad situation.  

I'm totally confident in my new financial famiy...

If it happens a second time, tell the tenants who are making the noise that they need to stop or they are in violation of the lease.This is solid advice and exactly what I would do in this situation.

Payment Terms & Renovation LoansA financial agreement is the backbone of any contract.

(We're not desperate to sell) With being new to the selling side, I'm curious what is standard for agent commissions in an off market 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?

(Due to some financial issues with him in the past, I'm not willing to cosign for him)  Would a rental agreement with the roommates suffice? 

Hi Nirek - I deal with a lot of clients in your similar situation.