@Neal Collins yes there is a ceiling on how much an adu can demand as it has to cover its value from rental income.

You may be able to demand a higher price and increase your cashflow. 

Your concept seems sound, lots of SFRs in your area and lots of demand as the area continues to grow.

Imported hardwood floors vs oak.My opinion is that as long as homes are in demand, as long as the schools aren't truly sub-standard, you shouldn't shy away from investing there.  

We are trying to protect ourselves in the case that they decide to move out and demand a lump sum of money and claim that all the appliances are theirs.Any advice is much appreciated.

Lending has been much tighter, building supply much slower (although speeding up past few years) and the market has a different kind of demand (as well as effective purchasing power of that demand).

But to make sure nothing fishy is going on, you can demand a signed rejection letter from the seller to make sure that the agent in fact did present the offer to the seller.

In turn, they check the purchasers finances, and in some cases demand a years fees paid in advance as security, especially if you're retired.

If it is an area which does attract the best tenants, it could demand a lot of your time to manage the turnover of the tenant.

But If I have the contractor pay for materials they will demand a higher amount of money upfront.