My dad used to manage other people's properties but eventually quit because the money wasn't worth it and he always ended up prioritizing their properties so as not to get any hassle from them.Another way to approach this might be to go all in on one project yourself and see how far that money gets you. 

We renovated the SFH and converted the garage to a 2-bed ADU.

Being able to A/B test MTR at the same time would allow you to know if you can convert the STR to MTR if you ever want to move out and keep the property.As for the net negative house hacks - I always like to remind people that shy away from a deal because they aren't making money that they are usually still coming out ahead if they are spending the same or less than they would on rent.Great last point.

We eventually plan on adding more properties and its not whether we should or should not create an llc, I believe we are set on it.

Several factors at play: the sales market has been slow so many would-be sellers are converting houses they can’t sell to rentals, lots of new construction units have been completed recently, and in-migration has slowed down a bit.

I want to eventually find my forever home and create a bigger real estate profile.

This client was transferred to me by another PM in our company because her portfolio is maxed out and she doesn't have capacity to take on more properties.This client had been self-managing a short-term SFR for the past several years and recently converted it to LTR.

Maybe I could convert my garage to a movie theater or something?

The fact is that anyone who takes, leads, or carries away the property of another with the intent to convert it to their own use or deprive the owner of it is committing a crime. 

If somebody wants to get an FHA loan, then eventually turn that into a rental (short term or long term TBD), how would that typically work?