The red arrow is where the water was leaking from under the trim.

I am rooting for you and hope that your plans work out beautifully.

I'm not saying definitively that it won't work, because I have only a little information to go off of, but there are some red flags for me.

I wasn't sure though if there was red tape I wasn't thinking about.My situation, moved to Jax FL.

I was just wondering whether, on first blush, you guys saw any major red flags with this plan - i.e. things that you learned in the process of doing your own ADU. 

Hopefully that helps offset your selling costs and you don't lose too much on this deal.Yes some of these indicators raise a red flag to an experienced flipper but I seemed to look over.

All prior references check out also, so only red flag right now is the credit score on this applicant.I do have other quality applicants without this issue, but these 2 individuals are willing to sign a long term lease where I have an impression they could be in the home for +4 years if things go well, which would be great savings on vacancy costs. 

All utilities would be under my name, proper insurance placed and I would change DMV and to the new address while we wait also, so I don’t see any red flags coming from this.. our current home is about 3 blocks away also and will become a rental when we are able to move, so insurance would be change to rental and place on new house as primary as soon as escrow closes?

The loan can be red flagged for talking to the appraiser about value. 

That's a red flag but it's also an invitation for negotiation.