I have a close Friend in Florida, who needs to have a Reverse Mortgage released.

You also cannot close in an LLC or use business credit to fund the down payment. 

.• I estimated that the repair costs would be close to $10k. • My final plan is to rent the units as long and medium term rentals after refinancing and buying out the seller.• I do not currently have enough liquid capital on hand to put down 20% for a DSCR type loan.

You didn't mention what your PITI is and what kind of income your ADU brings in but I'm guess you're close to living for free.

The biggest draws for investors are not needing to provide income docs (no W2, tax return, paystubs etc needed), DTI doesn’t matter, you can close in an LLC, and not all lenders report the debt to your personal credit (so it doesn’t affect your credit score or DTI for future conventional financing).

I have one rental close by, rent amounts are crazy. 

The profit would only be calculated after all cost to include closing cost (realtor commissions included) were deducted.

If so, you could plan to market about 60 days before lease end or even sooner if their house is ready earlier, so you can close as soon as they are out.

My guys walked it and its not anywhere close to being completed.

Obviously validate that claim prior to closing, but let's not put the cart before the horse.