and build an accessory dwelling unit (ADU) on  Prop 2 which would generate about $2400/month gross rental income, bringing that property's income to $6,000/month.

If you're looking for a house hack I would wait patiently for the right 2-4 unit that works well for you and your own individual needs or I would buy an older SFH with an accessory dwelling unit (or the opportunity to add your own or convert an unused structure on the property).

The accessory dwelling unit shall be limited to a maximum of 1 bedroom.7.

However, I am not sure that if this space is converted, it would be considered an Accessory Dwelling Units (ADU), which the city prohibits. 

My day job is being the manager of a Auto accessory store and the co-owner of a rental equipment company.  

I'll start with a list of the bare facts, then more general info, and conclude with my specific questions.Home in question is an accessory building attached to a rental property.

Resolution No. 2019-007, approving Ordinance No. 1330, an ordinance to permit accessory structures in the form-based districts (CN, CN-Mid, CN-SF, etc) to be a maximum of 25’ in height or to match the height of the primary structure, whichever is lesser.

Kitchen Total = $9,800 to $10,800BathroomBathroom Installation: ~$2kMaterials:Tub: $300Shower Head/Kit: $125Toilet: $100Vanity: $500Faucet: $100Tiling (100sf x $3/sf) = $300Mirror/Bath Accessories = $150Bathroom Total = $3,575Kitchen and Bath Total = $13,375 to $14,375If you tack on your GCs time to manage the project, overhead and profit, I can easily see that adding another $5k+.

v=qHpc80xVNFk Dave Meyer in podcast rents out "accessory dwellings" which sounds much easier then legit duplex conversion.

Unless this is a class A property, I'm not sure why you have such expensive accessories.4)  I would charge for debris removal as well as lawn repair.