@Kyle Cross, correct me if I'm wrong, but I think maybe what you're getting at is potentially pitching to your parents that you would like to take a shot at personally managing the units to gain experience and some form of compensation.

Unrelated persons ordinances are common. 

Personally I’d wait and see what happen.

You are still personally guaranteeing the loan.And you did the right thing by putting the assets into an entity, especially if there is equity.

Where would somebody find such a person that even gave a care???? 

I haven’t personally had a bad experience yet, but I know it’s definitely something that can happen in private money lending.

IF it was not on an auction site none of the information would be known unless you do your own research. they could say its a 3bed 2 bath home and you go buy and its burned down (seen that before). 100% is on the person bidding at auction.

please send me a case example I'd love to read. that's one appraisal. the knowledge I have as a licensed general contractor working with investors from 5 cities at a time all over the country buidling 3 different floorplans I would say trumps one ADU you read about online This is from my own personal ADU that I recently built and recently appraised earlier this year. 

I would be prepared to file for eviction etc. if they are 1 day late on payment, but would not actively be working to get them out if there is not a blatant current violation of the lease agreement. 

My expertise is deal analysis, buy and hole strategy (creative financing) and personal finance.