Doing this results in a reduction of the effective amortization to 17.08 years (205 months).  

Would this be an optimal win-win for risk reduction + tenant satisfaction? 

I maintain even break even on valuation (which is rare in SF Zoned areas), the ADU has big disadvantages versus new property acquisition including financing, level of effort, rent control, prop tax being based on cost rather than value added, length of time including length of time from first expenditures to first income, reduction of something from existing unit (in your case existing home lost its garage).Did you see starting next year Mf can add an ADU per unit up to 8 units without any affordable housing concessions?

We closed and the Dundee property was listed for rent late August.105 days of vacancy, three rent reductions, and two PM teams later, I’m stuck with an unrented property that, once rented, will cash flow negative each month (and that’s excluding the cost of the 100+ days of vacancy).I later learned that the initial PM team I was paired with actually did not have any experience with RTR.

So, if interest rates are a buyer’s primary roadblock, then I recommend negotiating a rate buydown at a seller’s expense or looking at new construction, where builders are offering rate reductions and other substantial incentives.What if I’m a seller?

QE et al (inflation reduction act!

If spending cuts are not enough to pay for big tax cuts that will make the deficit worse, and possible tariffs/price increases.Lets hope Elon and Vivek and have a monumental reduction in Gov't spending. 

@Ricardo P. Ill

So the buyer's technique got them a $100,000 price reduction.

I do have the text message conversation where the landlord agreed to the reduction in exchange of the two bedrooms.