You've done a great job finding a lot of information on this over the past few days, and if your project is in fact located within one of the ADU pilot areas, then that is 100% the route to go in order to Legally add the 3rd dwelling unit.

I guess I can see why people would choose this route, probably b/c its cheaper.   

This would obviously make it easier for self-managing, especially if you go the STR route. 

But, DSCR / Non QM would be the route. 30 Yr Fixed Rate Mortgage.

I do not want to go the eviction route.

It also allows configuration of your account, I setup my “business hours” so calls between 6pm - 8am get routed straight to VM.

@Barry PekinThanks for the reply, it sounds like you typically go the option 2 route and get to the underlying issue shortly after the start of the call instead of right off the bat.

But for now, separate LLC's are very manageable and seem to be the safest route for me.Best of luck!

Define what your goals are and go that route. 

Going this route, are you going to be the one responsible for evicting the late tenants, or is your contract saying that the seller will deliver the house vacant?