If I'm not mistaken, CEMA is basically the concept of paying off the current mortgage and then pulling equity again for a second Mortgage which obviously is an extended period of time depending on merchant preference. 

They are looking for a 3-month lease with the option to extend and are "willing to pay a premium".

I do not have and Uncle Bob with the funds ready to go, but I am definitely going to have to find one amongst my friends and extended family, because that would be the best case scenario for sure!

Gas line extended to ADU is preferred for sure.PG&E doesn't allow people to install gas submeters on their own (you can install an electricity submeter yourself for a few hundred dollars after filling out an easy online application).

If he defaults in 12 months you have a strong negotiating position to extend. 4.1) Check out his credit and experience to judge whether he is likely to be able to pull this off. 4.2) You are protected because your loan should be in first place.

If not, you should have the option to extend or terminate the contract.

He sent them over but I was confused since this seemed to be a new contract. we extended the previous contract adding a three month extension.

All the money is still there waiting to be lent out and many local banks are trying to figure out how to extend financing to investors and/or asset borrowers (many have through portfolio lending). 

These were my numbers:Purchase Price: $525,000Down payment: $10,500Interest rate: 4.99%Monthly Payment: $2,139.46Term: 60 months, with a $5,000 option to extend another 5 years.Earnest Money: $500Gross Rents: $3,450 (this is what the seller told me)Vacancy: 4%Property Management: 8%Repairs/Maintenance, Cap Ex: 8%Utilities: $200/monthCash-flow: $0/month How did you find this deal and how did you negotiate it?

Usually the utility company will not extend their responsibilities to the customer’s houseline.