Whether or not they have legal recourse could be debatable and legal fees would eat away at that $1,500 in no time.

Make it a goal to eat lunch/have coffee with a new person each day. 

I've been eating them up and learning a ton.

Cap ex and maintenance are still items to save for, that eat into cashflow, even for newer properties.

Finding good and decently priced contractors is one of the hardest parts about investing and really can eat into your profit if you are not smart about it. 

You can't have your cake and eat it too.

I can probably cash flow the ADU at around $1k a month but of course I have to wait around a year for it to be built but I'm ok with eating the payments during that time.

If a borrower stops paying on that first mortgage, and then the lender goes to foreclose, any equity that might have been had in the property is now gone because default interest, late payment penalties, legal fees, etc will eat up anything left after the principal balance of that first lien is paid.

I suppose you could take that if you need/want the cash to ride out the vacancy and refi later at a presumably lower rate than the 8.75 but you'll eat the appraisal and finance costs....

If this is your first one and it's eating you alive, it may be better to just sell, and look for something where the numbers do work. nothing down is great in some cases, but if it leaves you in a spot where you just can't get the property profitable, it's not.