Wholesaling is a great option to diversify your toolkit of potential deal exits if you are an experienced investor, but I think you should always have the ability to flip the deal but decide to wholesale due to some other limiting constraints (e.g., not enough contractors, bandwidth, etc.).

Quote from @Zach Steinberg: I think it's a mistake to live there without charging yourself market rent.

Although it is a city wouldn’t think of it that way.  

And unless they're damaging the unit, I don't think I would go so far as to evict them for not paying the deposit, it will end up costing you more.What you might be able to do (check with an attorney) is charge them a late fee for not paying the deposit.

Things to think about include how the market is doing, your own money situation, what you aim to achieve, and the kind of property and where it is.

Yes, don't think too far ahead right now.

Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started.

There also should be very few (if any) piping or electrical penetrations through the fire wall, so I don't think your rodents are getting in that way. 

@Tyler Dunkel Did you think about applying to the city's ADU program? 

None since, I think this is not a good idea anymore - but I could be wrong as I only focus in FL.