Whatever I do, I would need to do with a HELOC—effectively financing 100% of the property (down payment and closing financed with HELOC, rest of purchase financed with a mortgage). 

The seller and their agent hopefully did a good job communicating with that tenant to set expectations.

*Team up with good contractors, communicate well, and keep them happy*Track every dollar, so you always know where things stand in each category.

I heard that one of the new laws that went into effect 1/1/25 in CA requires landlords give tenants photos of any areas/issues that were a cause for security deposit deductions.Thanks in advance for any input !

When your tenant stops paying and communicating, who will knock on the door to see if they still live there?

If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.

Having a tenant will not effect the appraisal in anyway.

He's already making (effectively) around $350/hr - if he's paid on production he could also just make another $175k a year with those hours. 

Quote from @Sheraz Zia: Hi everyone,I’m managing the digital marketing for a real estate business, and I’m exploring PPC ads to generate leads more effectively.

The tax prep work is straightforward (assuming its just a W2 and a long-term rental), and your priority should be to find a qualified CPA that communicates and responds in a timely manner.