If they decline, go ahead and start marketing the property to minimize vacancy loss. 

And do your diligence ahead of time, talk to them before you got a place.

Or would you go ahead and just get them fixed and continue to live there?

A partial payment can extend the time - but if no partial payment is received then we will go ahead and file within the week.

Probably getting a little ahead of myself.

Options in your current position is, if you were considering renting out the ADU , sure go ahead and do....until someone gets Code Enforcement on you then you deal with that headache at that moment.

I've always been told to avoid variable rates but if it's essentially a fixed rate for the first 10 years, is it a bad idea to go ahead and refinance with them and just expect to refinance again before the 10 years are up?

There is no promise rates will fall at any time ahead, that's a gamble and the three points then wasted money.

It just requires a bit of planning ahead to make sure that this occurs.

This way, you can ensure that you will have a solid financial future ahead of you.