Now in California is more feasible than ever to build an ADU, With a few companies that offer the 5 steps in-house ( Design, Expedite, Construction, Finance, and Property management) why not do it right from the beginning...

Such plans are designed for owner-only businesses with no full time employees.While it is possible to setup an ERISA 401(k) plan in a company with employees that can be self-directed, it is generally not beneficial to do so. 

Which, by the way, was specifically designed to destroy this strategy.

I'm all about creating a life by design- when I have clients who call and say their goal is to retire by 40 so they can travel with their kids...shoootttt that resonates with me.

You definitely would want to engage with a tax professional. 

I have  more than adequate liability insurance coverage for each property, and I don't engage in other inherently risky activities outside my rental real estate business.

They then will find 3 or 4 properties that have sold in the last 6 months within half a mile with the same design, sq footage, year built etc.

1 - Learn how to analyze markets properly based on $$$ not %%%2 - Learn how money works, and then learn how to develop strategies that don't involve buying distressed properties3 - Learn what a REI Plan is, how to design one, and how to execute it.4 - Learn the true meaning of the words:  Cost, profit, risk, leverage, and more5 - Learn why your seed money should NEVER be spent...you only spend your profits6 - Learn what a "Cashlike Substance" is, and why it's more powerful than cash7 - Learn how 5% > 15%8 - Learn the meaning of the number 1073741824, and why from now on, it is the most important number sequence in your life.9 - Learn the Power of the Penny10 - Learn what Einstein called, "the greatest invention of the 20th century", and "...the 8th wonder of the world"...and how to incorporate it into REI....and, more

If a resident who does not have aid designated for rent wanted to pretend that they have financial aid for rent, they could simply submit a screenshot of their loan (which would only be used for school), and get away by only paying the $800 and deferring the rest of the payment until fall.

You will get what you actually need as opposed to something that might suit the needs of some other investors but not you, and you would not be engaging in intellectual property theft.