Many lenders limit their loans to around 80% of the purchase price to mitigate risk, which can indeed restrict your cash flow for renovations.

Hi Kailas - Yes, you can typically rent out the main house and the ADU to separate tenants on separate leases (so long as you're compliant with city regulations/restrictions).

- what do your local laws allow, are there any restrictions

Not seeing many deals in that area, maybe because I am restricted to the <100k range.Yes, I am part of a learning group called Openspaceswomen.

I would like to know if there is a way I can terminate the lease based on the unclear termination date or no termination restrictions indicated? 

I'm up to date on Portugal's various STR restrictions.  

One other thought is fully furnished mid term rentals.. these have worked very good for us in Vegas we get a double or better rent premium on ours.. much less work than STR and you dont have to worry about ordinances or HOA restricting them..

They promise 100% financing, but their lending criteria are incredibly restrictive.

I live in Tahoe and there are multiple restrictions on STRs so if that is in the plan check the local regulations. 

Look for an existing one that has the cashflow.No deed restricted community.