I don't want to step on any toes, but if you're not working with an agent, I'd be happy to help you, but even if you are,  I'd be happy to talk with you about the Redding area and answer any questions you might have, etc.

And I’d like to build the single family home and refinance with a dscr loan.would anyone have any advice on this or suggestions 

That makes me even more suspect but that is just me.

Maybe even allow for a small kitchenette for full privacy, although it would be attached to the house with a connecting door.The yard has enough room to allow for it.

is that even legalI would be open to hear about it

And this might indeed require some time to pass before doing that.You could still create a single member LLC with either you or your wife as member. 

Even if you want to roll the dice, at least is a calculated risk, not a surprise down the road. 

Keep building momentum, even if it takes small steps!

You could do General Contracting where you'd need knowledge of all trades or manage a team of one single trade. 

Capital gains are calculated as:Sale Price - (Original Purchase Price + Capital Improvements + Selling Costs) - depreciation (if applicable) = Capital GainYour mortgage or HELOC balance does not affect this calculation—it only determines how much cash you take home after the sale.In Massachusetts, if the home was your primary residence for at least 2 out of the last 5 years, you may qualify for the Section 121 Exclusion, allowing you to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from federal capital gains tax.