BUT, since I just re-read and it seems that he did, at some point, pay, so he is not really a "squatter" and you can file an eviction action.

I read Rich Dad Poor Dad a handful of years ago but recently re-read the book with a different mindset to implement the ideas into our life today.

Thank you for the help.I just reread the SHST section and see that the SHST is worth the unadjusted basis.

(I may have found the podcast that talks about this (one I've listened to before), but I couldn't get the link to work for some reason to re-read it.)3) What things should I be asking these lenders?

Re-read @Shafi Noss’s post.

Regarding your other point with @Sydney Sherman I re-read the entire 65852.2 and came to the same conclusion at first-  nothing about only one ADU when SFR on R2; however, re-reading 65852.22 it does say JADU's are for Single Family zones as highlighted in Sydney's attachment on her last message. 

I thought the reset would be based off of the current mortgage rate at the time of the end of the 5th year but after re-reading the mortgage paperwork our original interest rate stays the same and the payment resets to a lower amount based off the amount of principal we have paid off at the end of each 5 years.

I've read many different REI books and rereading them in some cases.

I re-read every post and marked down how many of you said the property should get a tub vs how many said leave the shower.

. :) Probably not the cheapest CPA around, but re-read the second sentence in this paragraph.