The USDA backed loan is very appealing...but the kicker is that they will only finance non-income producing property from my understanding, or more traditional forms of multifamily property. 

Is it even worth the trouble or expense of obtaining legal advise? 

The value to the buyer can add up to a very sizeable amount of money; typically pays the up-front lender fee to lower the interest rate, which results in accumulating paid interest savings for the buyer as long as the buyer owns the property, or for the life of the loan; may add up to many tens of thousands of dollars; make sure you check the fine print of the lender's loan lock provisions; be sure your seller's money is truly paying down the loan rate as opposed to paying other lender charges to the buyer.  3.Seller-Funded Temporary BuydownsBuydowns can also be structured to adjust the buyer-paid interest rate for a limited number of years; can cover the first two, three or four years or more of the buyer's loan; allows your seller to reduce the buyer's ongoing loan cost (monthly payment) considerably.4.Owner FinancingA willing seller may be able to keep their selling price intact by offering financing to a buyer; for a seller who needs to sell as soon as possible for the best possible price; expands the potential market for buyers to those who might not qualify with a lender for any number of reasons relating to their credit, verifiable income, or other issues; seller creates an 'investment" that can produce an annuity with a very good rate of return for many years; seller needs to become very well educated on how to qualify a potential buyer (how to get credit, income, debt ratio, and other accurate personal historical data on the buyer-and how to verify that data); seller needs legal advice to review contract documents, as well as title and escrow services to conduct a title search and closing; buyers attracted to seller financing may have income sources including part- time work, bonus income, royalty income, dividend and interest income from investments, or they may be newly self employed; seller who finances needs to get a substantial down payment and ensure that the property is adequately insured by the buyer and that initial property taxes are pre-paid and a tax payment plan is established; if the buyer stops paying, the seller will have to proceed like a bank or other lender and foreclose on the buyer. 5.Contract for DeedA contract for deed agreement to purchase is similar to a seller-financed purchase.

In similar circumstances, my priority would be to obtain possession and rent the property to produce income.  

The loan is qualified based on the debt service coverage ratio of the income the asset produces (relative to its expenses and annualized NOI). 

@Guifre Mora sorry if that last comment sounded snappy- I’m texting from my phone and having trouble with the bigger pockets app.

In my state it would be the division of consumer affairs, they could bring down a world of trouble if the landlord is acutally breaking any laws with how they have their property. 

If your numbers are accurate you would have a producing asset with no money.  

So OOS is an option, but like you brought up, ADUs are an option as well.ADUs are a great way to get into investing out here in CA, but its still not without it's own troubles.

My capital raising has been strictly through my close personal network so far, and this is the first time that I've had troubles pulling money together.