And as a person who is very familiar with cancer I know that it's not a situation that involves breaking all commitments within 2 weeks so I do have my reasons to be skeptical. 

Personally I think it depends on your involvement in the flip.

I have not found any local meetup groups yet, but I would be very interesting in getting involved in some here!

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. 

So family emotions are involved in it too! 

You cannot discriminate against the origin of the income and if there are vouchers involved income should make up the remainder of rent due not covered by the voucher.

@Pawaroon ChandanarajaHouse hacking involves buying a multi-family property and living in one unit while renting out others.

I personally, being on the NAR Board, at multiples levels of the organization, and being heavily involved on the lobbying/legal side have been way ahead of the curve on this stuff. 

Would the SDIRA have to approve of the loan-out and wouldn't this be considered HMLing and what specifics are involved if that is the case?

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.