If we need customized items, like a Leasehold DOT on an airplane hangar portfolio, then we (borrower) pay extra. 

They are paying you an extra 5% per month.

We have a duplex with an extra flagpole lot that we are hoping to set up with an ADU for short term rentals.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

Hey @Himateja Madala, let's get a shout out to @Shawn McCormick who knows a ton about the area.I will say that it is a tough market and you really have to go the extra mile.

I’m having issues with them as they’ve grown & only worried about their  reputation & anyway to make extra money.

Everyone needs to be extra careful and do their homework.

Had I hired a professional, it would have been done in a month and the extra five months of rent income would have paid for the contractor, saving me six months of nights and weekends.

But remember that what is favorable now could come unfavorable in the future as they readjust over time.Reasons many landlords avoid vouchers include the hassle of the extra inspections, the perception of a worse tenant, and maybe the inconvenience of getting rent from two different parties. 

I understand what you are saying in terms of having to pay the extra 650 $ a month.