you are right on both counts - it is saturated and there is tremendous demand within all asset classes / niches, AND real estate is constantly changing hands and there are still deals out there. 

I will submeter the electric and water (no gas) to the ADU.Or do I see if I could get a discount on the impact fees(prob fat chance) and get permitted in 2019?

In-town, most properties don't meet the density/saturation requirement.

They they get a big fat default judgement against you. 

Furthermore, it is on a very busy, very dangerous state route that is saturated with crime. 

Sure, it is saturated, but you just need to find the right deal.That said, I love the northeast! 

Pete and Clearwater still work well for mid-term rentals despite some short-term rental saturation.

All the people who do not live there are sitting around in our underwear getting fat on our couches and are like "yeah they are mismanaging a wildfire" and most of us cannot put out a candle never mind a fire - like we are all now experts on how to put out wildfires....Haha I saw that too.

I have also really considered medium term rentals, however it seems that the market is somewhat saturated as many rentals have been dropping prices significantly when I look through Airbnb.

For this they get a big fat DO NOT RECOMMEND