I suspect she's making an excuse hoping you'll go easy on her.I would give her a written notice (text or email is fine) that she terminated without 30 days notice and therefore she forfeits her deposit.

Neighbors can make things very difficult; from blocking development to constantly reporting anything they suspect as a potential code violation to noise complaints.  

You did not indicate where this ADU is located but I suspect you will be unable to get it permitted.

@Joel Owens  I think the issue is the sponsor deals need accredidation which I suspect many who jump into low end rentals don't have.. they could invest with the CF that do not require you to be accredited.. but I have seen some really crummy debt deals..

I suspect you'd figure it out, which is exactly what your tenant did.

I suspect an ebb/flow effect here as areas over-react and ban them, then back off and relax regs again.

If yes, i suspect this one will be up for underwriter discretion.

Also, pay attention to anything that you suspect is an add-on, especially a built up second floor.

They are either going to encounter some costs that I suspect they were hoping to avoid or use a contingency plan (accessing by pedestrian access only going through existing unit's yard).As for the unlicensed STR, to market the STR would make it easy for a jurisdiction to find out about the unlicensed STR.

The closest limb was over 15 feet away from roof so I suspect they just didn't want to insure the home for some other reason.