Not sure how many here will be affected by this but it adds to the tougher landscape for STRs in the mountains.

State Auto assured me that my insurance premium wouldn't be affected because there was a zero-dollar claim.At the end of last year, State Auto was acquired by Safeco, and my insurance premium increased by around 190%.

Repeat.

Here are some key recommendations to consider:1.Focus on Emerging Neighborhoods:Look for emerging neighborhoods in Orange County where property prices are still reasonable but expected to appreciate.2.Niche Markets:Consider niche markets like student housing or senior living, which can offer stable rental income.3.BRRRR Strategy:Use the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) to increase your property’s value and refinance to reinvest.4.Partnerships:Form partnerships with other investors to pool resources and share risks.

The first step of the eviction process isn't anything that would affect their credit, or cost much, so I would do those steps now so that you can start the legal action immediately on the 1st of August if they haven't moved out.

Despite going through this stressful process, I'm planning on refinancing out of my current FHA loan into a conventional loan so that I can repeat the process with another FHA 203k loan because it is a great house hacking tool.  

It can increase your basis in the property which affects capital gains, but given you bought another primary with the funds I don't think that applies. 

If there is anyone with experience in the area with any input for me on how an ADU will affect the property's value and ability to sell that be appreciated!

Holding Period: Short-term vs. long-term holding affects tax treatment.What challenges have you faced with taxes when flipping properties?

Rinse and repeat after that - keep working like crazy, keep delaying gratification, and start saving up for the next house hack.