She wants to stay in the unit, which I am perfectly fine with, but she would like for him to be off the lease so once he gets out of jail, he can't come back and demand entrance.

In my limited experience opinion, the backyard cottage would need a "single family house feel" with separate yard, parking, and entrance to attract people who need two bedrooms versus single younger tenant who might not care so much about the "feeling" and only needs 1 bed. 

I would go to one of my target neighborhoods and find the corner house closest to the entrance which would get the most traffic obviously and offer to pay them monthly and place my sign in the most strategic spot of the yard. 

I stumbled across a single family house with a mother in law suite with outdoor entrance, kitchen, bathroom only 10 minutes after being listed on Zillow. 

I can't make a rental deal pencil within Seattle proper if there isn't a second entrance/kitchen/dwelling unit. 

Grant, if the house is vacant and liveable, I generally find that a sign in the yard which says "House for Sale....Owner Financed" plus a few more at the entrances to the neighborhood, is sufficient to get my phone ringing off the hook.Does the local Real Estate Lawyer happen to be Scott Horne?

If you plan on duplexing consider that because seperate entrances are key and to have to build a staircase down to the ground from above or cut into an existing foundation is a lot of $ needed to spent that can be avoided.  

The furnishings are high end, separate entrance, etc and would attract a wealthier tenant.

Had a large dirt pile on it and someone had dug some dirt from the entrance, leveling the entrance.7.  50% of all the storage for the town was in a location 4 miles out of town on a highway all by itself. 

Also if one had a basement, perhaps egress private entrances could be used so the basement could become a few condos.