The note holder was more than happy to extend the note an additional 5 years as I've always made timely payments. 

3) Assuming a 1 year stay, you’re expecting the tenants to go out and spend $1,000-$2,000 on a washer dryer, the same as paying $80-$160/mo more in rent.

In addition, funds allowing, I can help you with turnkey properties in a clustering approach so you have a great portfolio to reach the goals you described.

They could spend $10,000 in court defending this, or they can offer $2,000 as a settlement.

There is still substantial risk in real estate, and leveraged assets always introduce an additional layer of risk - ask anyone who was around during prior crashes.Many folks when the look at true passive investing...they want to invest, not find a new job. 

When buying properties that have been vacant for a long time, budget for additional plumbing costs on the rehab.

For example:  I want to develop a strong passive income stream to:  (this is a why) so that I can not rely on a 9-5 job and have the FREEDOM of TIME to: (TRAVEL, Spend more time with Family, concentrate on a hobby, volunteer with a NON-Profit, develop a business ect). 

This will typically hurt the value in addition to the poor value associated with ADU additions.  

Just a brainstorm, could you ask if your cleaning crew could run through a checklist for you for an additional fee?

Additionally, if you do decide to market this home with a realtor we can offer you a list of whom we consider the most professional realtors in the area.