Your main concern should be whether these bedrooms and bathrooms on the lower level are legal and have the proper egress require for fire code and livability.

If not, then you really need a strong legal structure stating how these properties will be governed going forward, including management, tenant selection, capital expenses, etc.

At the same time, someone else reduces your debt, and you get to use the tax code to improve your tax situation legally.  

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

Whether it's a legal demand for compliance or simply an email, it doesn't really matter; just make sure everything is in writing. 

.- The TL states that those are technically the team's leads and I will owe the 20% if they convert within the year since I was given training (which I was not), lender referal (which was forced on me by the TL even though I work with my own lenders for my clients).Is the above statement true/legal/valid?

Last I checked they don't allow ADUs legally that aren't fixed, they want to see foundation for it to be rented out and considered an ADU. 

Most are fine with that, but a few will have problems with it and claim there are legal issues, etc..

You will attract all scumbags in this world and soon find out your repair and legal cost will easily pass your yearly income.

Not sure if that is legal but I agree.