This normally would not be an issue but the cost of the water/sewer is extremely high in this area and specifically because the meter is a one inch, the costs are much higher than a normal 3/4 inch on a non-duplex. 

Live in one side and renovate that side, then after the lease for the other unit is up move into that one and renovate it.

Most ADU's are one bedroom units and rent accordingly.

That could be your PM company if you plan to hire one. 

I mean one family on one home i bought basically stripped down to the studs .. everything was gone by the time I got them out. 

One just need some interior paint and refinish the hardwood floors and it was ready to rent.

One thing I would suggest is if you start getting some consistent bookings do not jack your prices up over 15% as a new listing.

They are the only one that can answer you with 100% accuracy. 

Also pet rent is now capped at $25/month.Thank you for the update, I believe the security deposit for leases signed after October 1, 2024 is maxed at one month (including any pet deposits which must be refundable).

If your state is an expensive one it might be cost prohibitive to have an LLC for a small rental business.