I prefer the latter because you'll have the opportunity to spruce up the property and get market rent from a tenant you screened and selected.If you choose to raise rent on the existing tenant, I recommend notifying them to see if they want to stay.

Eventually, laws were passed that required the Banks to accept Replacement Cost coverage.Suppose you loan $500,000 on a property. 

Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

What percent earnest do you recommend?

The original budget was $25,000, but we hired a contractor who did subpar work, requiring us to hire another contractor to redo everything.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

I would recommend the cleaners do a steam mop clean when they have some extra time.We have the LVP Mohawk flooring I put in, in the kids bunk room.

Any recommendations for neighborhoods to look at for flips, so I can do research? 

Of course, if they don't vacate the premises by the date they are required, you should take the necessary step to terminate the tenancy, whether by a 3 Day Notice to Pay or if they are a holdover, by delivering demand to vacate with notice that they are a holdover and owe double rent per F.S. 83.58.

It's an area I don't actively recommend STR as it does have usage limitations (duration restrictions between guests) but it's primarily a second home getaway and will transition to full time vacation rental down the line.