We do not NEED to do the refi but the plan is to eventually do it and remove the other person from the loan.

We learned that persistence pays off, as navigating a short sale can be a lengthy process requiring strategic planning and continuous effort.

The link above has most of those details, The fixed loan is from an insurance company, is interest only years 1/2/3, then no defeasance penalties up to year 10, they plan to sell/re-fi in 5-7yrs.

My plan is to hold onto it as a rental property, targeting Section 8 tenants, as the rental income is quite attractive at nearly $1,500 per month.Here's the challenge: The property's purchase price and labor is below $40,000, and I'm uncertain about my ability to secure a traditional mortgage for a property at this price point.

I've included a preliminary floorplan below.My goal with this ADU is flexibility in terms of renting it out either short-, medium- or long-term rental in the future for income, as well as maximizing resale value (main property is 1300 sq ft 3/2) to someone probably with an investor mindset who would want to house hack.My main concern is whether it's a good idea to have 3 en-suites at the expense of having a small living room/kitchen area.

Go to their planning zoning section.  

I would say yes, if you are planning to grow.

Try to FAIR plan then get a wrap around 

Everytime I see a post saying this I check Podio and it has a GlobiFlow plan for $24 a month.

I would use the time with current tenants to get contractors in and give me estimates on future projects I have planned for the place, then execute them once tenants move out.If there is a good contract on the tenants moving out either June 20th or July 2nd with the prior landlord, would you go forward with the June 5th closing date or move it to a different date after the current tenants leave?