I also have zero interest in positioning ourselves as a “value” offering in an industry where top performers can 2x + the cheaper companies. 

I'm not grossly opposed to SFH if it is much cheaper, but do to the spacing between dwellings per city code I could fit more doors on this plot if building duplex.

Being that you are in the bay area, if you wanted to purchase an investment property with 20% +- down, then you may want to look into a cheaper location to start with.

I would say this, if you wanted to find cheaper tax preparation you 100% could but it might cost you more in the form of incorrect tax returns or inflated amounts of tax due.

Here’s why it might be a smart move:Maximize ROI: With leverage, you can control a larger asset value with a smaller initial investment, potentially increasing your returns as the property appreciates.Preserve Liquidity: Keep your cash available for other investments or emergencies while still participating in lucrative real estate opportunities.Tax Benefits: Deductible mortgage interest and expenses can lower your taxable income, enhancing profitability compared to an all-cash purchase.If you have the means to buy with cash initially, you can later refinance to unlock equity for further investments or improvements.

@Stetson Oates, Thanks, and you are right, market conditions would limit how much of the initial funds one would be able to withdraw.I should also add that, while I am not an accountant or tax professional, it appears that at no time in the strategy above would one trigger a taxable event, since you're not selling any stocks or property. 

Related to the poor appraisals, it is cheaper to buy a property with an ADU already added than build one.  

(Another option to the above scenario is to instead have the LLC lend my father money to complete the rehab so all the repairs are made in his name...but then the LLC would get no tax deductions on the rehab, plus my father would wind up paying interest on the loan and the LLC would incur taxable income on the interest of the loan as well.)I've said a lot here, but It would be greatly appreciated if anyone can give me advice on the best strategy to pursue...Thanks!

Houses are cheaper in AR than in Texas and so is the property tax.

You want to make sure it will not be a taxable event.