Regarding Rob Beardsley he grew up in Silicon Valley and learned about real estate and tech from his parents, who ran a real estate brokerage firm from home, thus he had a built-in mentors and good networking to start with in addition to the capital that his parents have preserved for him so he got a good jump start.

I’d greatly appreciate your thoughts or suggestions on alternative approaches we might consider. the pro and Cons of this approach recommended by a lawyer, when it comes to tax, refinance, etc..Additionally, if you know of any CPAs or lawyers in your network who specialize in real estate investments and asset protection, I’d be grateful for a recommendation (DM me)Looking forward to your insights, and thank you in advance for your help!

If your property does not have additional upgrades that make it worth more on the market then you likely need to drop the price.

Since you're purchasing it under market value, you shouldn't have an issue getting it appraised at $145K.The seller would net $140K and the additional $5K would be seller's concession towards broker commission and closing costs. 

Although the rates are higher, for most borrowers, the convenience exceeds the additional cost.5.

Without knowing your age, I like the idea of pushing additional savings into good, no load index funds (I like Vanguard's S&P index but there are plenty of others) through a Roth if you're young enough, leave the rental portfolio as is and pay the debt down to nothing, since you're not inclined to really work at growing that end of it. 

What is your process for underwriting a rental by adding an ADU (addition or division)?

It's just that with Cali, there are many additional hurdles between you and success.

I’ve already again talked to contractors and got good estimates knocking down this one wall adds aton of value to the house.I estimate the additional amount would be $200-$300 a month after a remodel. 

Additionally, a sewer line repair usually results in vacancy and lost rent--even more lost money.A new driveway can easily cost $5k on the low end, and plenty of properties in my area have $15-$25k+ driveways.