@Alec Jacobs you have a good process as far as making them fill out a application before touring the property.

Quote from @Brendan Jones: When it's a home you intend to live in, I lean towards focusing on what you want, then making it work as best you can as a short-term rental.

Evaluating the numbers, lending preferences, property condition, and location will help you make an informed decision that aligns with your investment goals.

You’ll need to handle inspections, work with housing authorities, and make sure your tenant screening process is solid.

I know there is surety bond process and there a a few companies that appear to offer a service (Like Rhino)Furnished Finder has a new feature called Worry Free Waivers but when I tried  to better understand their process, it was clear they have not done a good job of vetting this out. 

The trades can make or break a good deal. 

I would need to see Norada's actual investment docs personally to make a decision.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Ask he/she legal questions surrounding the security deposit before making any rash decisions.IMO - Proceed with the eviction process as soon as legally possible.

This calculation should tell you what makes the most sense.