I would double check all this, but my understanding is as follows:The property owner is still responsible for repaying the mortgage, even after condemnation. 

hoping to learn from all you guys that already made it 

Some cities are now giving you money in the form of a loan to help build ADU's, which is great.

Having a real estate license is NOT required to be a successful real estate investor.IMO, it can help though!

By the way, the tenant should be charged for this as part of "cleaning and repairs." 

But, if you pay utilities, it might make sense to add a bit for the extra water / electricity.Personally, I would use this as an opportunity to tear up that 3 year lease. 

Decide what you want out of this journey—cash flow, long-term equity, or both.

There is a better forum for this under Real Estate Strategies called Buying & Selling Small Businesses.

Quote from @Joshua Michael Hauman: Hey BP Community,I've got a friend who is a veteran and asked for my help to get into investing and I'm more than happy to help him out however there a concern that came up.

I haven't run any numbers on this, but I've seen similar setups and at some point you are really just ahead the month.