If you play around with the numbers you can try to maximize cash out and keep it cash flow neutral, assuming rents don't go much below where they are now.Your tenants would be paying down the mortgage and you would potentially be making money on that equity.Of course you want to be responsible and have ample reserves.

I've read some of the forums that say in Florida this will turn into a long term tenant at that time and the landlord laws come into play. 

You can see how this plays together.

While i'm not working, I enjoy reading, biking, hiking, playing rugby, auto racing and much more. 

While i'm not working, I enjoy reading, biking, hiking, playing rugby, auto racing and much more. 

Are you trying to do this locally or from a distance as that plays a big role.

But if you’ve got cash, waiting a bit for things to play out and cool down may be a wise move.

I am getting a very interesting education on these assets and the statute of limitations especially on lines of credit are very important to understand.Just curious if anyone plays in this space and can share some experience as well

For what you are talking about, an ADU, this is not a big enough contract for you to be fussing over the details and trying to play lawyer by writing your own.  

How would you guys play this if your max deal size was 500k?