You really should never leverage the home you live in.

My Real Estate plan is slow and long, I don't plan to live on the income so it may take me a few years to justify a $2k expense for a conversation or for a CPA to handle my returns.

There are no crazy tiles, the countertops don't have aggressive veining, and there are no crazy accent walls in the living room.

Can you buy a duplex in Arkansas and live in one side just to get your feet wet and make sure you like the area?

The lender does not live in the home and the agreement states that they be listed as loss payee.

Without know more specifics, I'd suggest selling what you have now and investing in properties closer to where you live (and pursue 1031 exchanges).

She has lived in area for years. 

If one of the LLC members lived in another state and that person acted as managing member then you can avoid the FTB fee, but looks like you both reside in CA. 

Perhaps I have an odd case but I paid $1.35M or $455 / sq ft for a 3,000 sq ft duplex on a 7,000 sq ft lot in Los Feliz.Once I add the ADU complex, which will be around $350K, it will be a quadplex, 4,600 sq ft of living space. 

I also require proof of savings of at least 2 months living expenses.