So if I am calculating my cash flow:  $1250 x 80% = $1000 - $792 = $208 of cash flow.  

That's what peaked my interest, but after researching them more, the cost is going to be over $40k just to learn how to do it through their company.  

You can defer capital gains taxes on the ADU through the 1031 exchange, while the portion of the property you’ll use as your primary residence would not qualify and would be subject to capital gains tax as usual.

Maybe I am missing something but if you are referencing the fence, that will not stop water flow nor will it be part of a foundation support.

When I close on the house will I end up having to pay for his utilities too while I wait for the eviction process to go through?

@Jorge Leon replacement costs are through the roof this year.

Assuming the property is appraised at $650,000.00 I am hoping the equity will get my LVT to 75% eliminating the PMI, adding to the potential cash flow when I go to rent and then putting that cash flow + personal savings away to raise capital to buy another piece of property.I realize that in order to buy my next piece of property I will want to put down 20% to avoid PMI and a high mortgage but saving 20% for a piece of property in my area is going to take some time due to the high price ranges $500,000-$700,000.

On the broker side, I like having a little bit more control over the process like being able to talk to the UW, ordering appraisals through my AMC, and handling all third party communications. 

Its very hard to find something to cash flow or even break even in Portland proper, so I am considering getting creative with adu's on a single family lot.

Our goal is definitely to have a positively cash flowing property, but we know it takes time.