Do you think they have some rights to oppose this ADU even if it is approved by the city?

If you got selected in the lottery you have nothing to oppose. 

My thought is, wouldn't the bank be incentivized to sell at my rate, as opposed foreclose on it?

In other words - a recovery of what you spent, as opposed to what it is worth.

Ideally, I like a city that permits short-term rentals through an active law allowing them as opposed to permitting STRs through the lack of a law forbidding it. 

Keeping separate bank account for property, as opposed to commingling with personal account makes for easier and less costly book keeping, accounting, and tax filing4.

Furthermore, you would be able to hold onto the asset as opposed to selling it.I'm sure there are many other variables to consider but this would be my approach.

If professionally done it will look better and be nearly just as durable as LVP (and likely cost less.)If using an oil based polyurethane coating (do multiple coats), the floor can be buffed and recoated as needed opposed to a LVP where you can't really do any maintenance and in the even of a repair often times you're stuck taking up all or most of the interlocking floor which is a huge hassle.I love LVP in the right situations and almost always use it in a kitchen or bathroom remodel, but have found it cost effective both on the front end and for maintenance reasons to save the hardwood when possible.

Well most likely build but aren’t opposed to buying (inventory is so low in our area however).  

When it comes to real estate valuation, COMPS, PPU (price per unit), capitalization rate are some of the more common valuation metrics I see used in real estate as opposed to NPV.When it comes to performance metrics in real estate (of which IRR is one), I agree there are numerous and it can be confusing as to when to use which.