I think you should go through with this project.

And this is a biggee wading through the fake lenders or the Joker brokers that tell you what you want to hear  but cant get the deals funded and you lose the deal and a lot of money.3. with actual PML  private people  usually have very limited funds so cant scale with them.. they can have a life event and just stop doing loans all together..

I have an 8-year plan to build passive income through buy and hold rental properties.  

A prudent investor doesn't seek quick riches through shortcuts.

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

You will make more money on appreciation when you sell your property than you likely will from the monthly cash flow.  

. #3 - Have finances in order (i.e) is this going to be bought through conventional, cash, HML, etc.

Right now, my company is paying for my license through the WRA, as well as all of my networking opportunities, and it has worked out much better than I imagined.

Not looking for long term rental in the basement so going through all the headaches of converting into legal ADU are not worth it. 

You are likely to get a better rate on your CD through an account like this also.