Moreover, it allows you to set the terms of the lease agreement according to your preferences, which can help prevent misunderstandings and disputes in the future. 

I own 20 acres of land valued at approximately $80,000, and I want to build two short-term rental (STR) units on it.For context, my family already owns two long-term rental (LTR) units in the same general area.

I can't say I've ever heard the term "NNN Bank".

The Tenant agrees to maintain an active renters insurance policy for the duration of the lease term and any renewal periods.

Many traditional banks won’t touch them, and even DSCR lenders will avoid them if the build out is done prior the securing long term debt. 

Yes, a contract is a contract, but it's a two-way contract.

I am interested to see if anyone else has invested in that zip code, and what they think long term values (5-10 years) will look like.

With out reading th contract I can't know if it is legal but it sounds like they created a situation where they have to be the manger.  

I intend to get a single family residence, add an ADU, live myself in the residence and rent out the ADU as a studio apartment long term.I have checked my city's ADU laws and long term renting is permitted.Question : can I obtain the REP status while maintaining the ADU while it is in my primary residence?

Negotiating favorable terms is both an art and a science, and in real estate, it's a critical skill that can make or break a deal.