To what extent you tell them how you structured the deal, bought the property or anything personal for that matter is up to you.  

These lenders may have more relaxed requirements regarding the ownership structure (LLC vs. personal names).Seller Financing: If the seller is motivated or willing, you could negotiate seller financing where the seller acts as the lender.

The other states we do business in have completely different structures. 

It's around 4 acres of land that could be developed into a cul de sac with ~10 SF homes.However the lot currently hosts a 5k sqft commercial/industrial structure (made out of metal). 

Plain and simple, there are just better markets for cash flow with less archaic tax structures and market swings. 

It will be a simple structure and our investors are friends.

Here's how you can structure it:Contingency Clause: Include a clause in your offer that states the purchase is contingent upon securing a lease agreement with a tenant within a specified period.Time Frame: Define the time period within which you need to find a tenant.

Similar with Florida HOA cost increases due to Mandated structure inspections and subsequent repairs.  

I never want to be the first to do anything. garbage deal let it go. you are talking about council variance, constructing or renovating a structure, you won't be able to get a permit. not advice but not to by the deal and not to look at the adu as anything but garbage anyone who says any differently should look at a zoning map and show me why and how an ADU makes any financial sense. you are only getting yourself into a very poor situation. tear it down and move on. 

I agree the Solo 401k is a better structure if you are eligible.