If this is still an issue, send me a DM and I can walk you through how to do this correctly!  

For example, I would need a new loan from a bank for the remaining $550,000 after the 4 years or would refinance the house for the $550,000, correct? 

You need to shop it to an Independent agent (or agents) and find out what the cost truly is to insure it correctly and then make your decision.

@Ned Carey so I am understanding this correctly, would you recommend not transferring to LLC and just remain in my personal name?

I'm sure if varies, but I just want a range to help decide what to do.Land is in Pilsen.You are correct the price can definitely range quite a bit depending on the size, finishes, rough materials, location, etc. 

The neighborhood possessed the correct fundamentals and even though home ownership was low, I was securing, teachers, nurses, resident physicians etc. as tenants but mistakenly focused too much on the cash flow. 

You could invest in syndications if you are accredited or you could just park extra cash in index funds until you have the time to at least side hustle real estate correctly.

I did assume the background check was correct and they were being dishonest.

So you can take that off the table.Buying an investment property first would be smart, but you can actually set yourself up with a unique option if you do it correctly.

If the DADU or ADU pricing is off and its costs $350k to build it (and is that number correct) thats the real question.