Ignore the $1,250 per month because that's your cost of housing, if you didn't pay that on the home you'd have paid that in rent so that's a non factor. 

A few other methods cost some money but is usually just throwing away small amounts at a time. 

@Jason Wray Thank you very much for this response ..I’ve never sold one of my rentals before feels like I’m cutting off a leg and paying close to 100k for cap gains is really starting to eat at me 😵‍💫Any chance you would be so kind as to send me a link to something in the ballpark of what you’re suggesting this way I can get an idea of area and what this type of property could look like!

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

When you took in the increased cost of the build how did you arrive at that percentage?

Here are some indicators to help you assess a buyer's seriousness:Questions: Serious buyers will ask detailed questions about the property, such as maintenance costs, neighborhood amenities, and property taxesStrong Offer: If a buyer makes a strong offer quickly, it often indicates a high level of interest and intent to purchasePrivate Buyers: If approached by a private buyer, ensure they provide a Letter of Intent (LOI) and proof of funds.  

We have a reasonable cost of living and properties are significantly less than CA.

With running this "business" there will be operational input costs.

But I would charge the extra 3% to cover my costs.