The source of the capital dictates what that loan and underwriting guidelines look like.With that being said, I would suggest finding a few lenders you want to work with, either private or hard money lenders, and really understand the programs and their guidelines.

@Terry Lao - HUD dictates the initial lease term and that must be 12 months, plus the partial month if the move-in date is not the first of a month.

State Law Dictates you can not individually sell and ADU, but you could lease the land from someone and build the ADU yourself in their yard - you could also try a Tenant in Common agreement, but there are some negative effects with that as far as ownership goes both sides

You can sell the property via owner finance at whatever interest-rate you dictate.

Can a Hawaii lender chime in on this - from what I see conventional loan guidelines dictate a leashold must be at least 5 years beyond the maturity date of your loan (ie a lease that expires in 2041 would have 20yrs but the lender will only lend on 20-5=15yrs).

This element ultimately dictates the ddesirability of the business and therefor its price.