Flood vents need to be installed in those block walls.

We would touch up and possible paint a couple of the walls/ceilings.

Otherwise you may be put into a situation where you have your back is against a wall and you have no way out.

Household furniture must be positioned and/or elevated to allow adequate air flow underneath and between furnishings and adjacent walls.

I expect it to be moderate size rehab which to me means no significant plumbing or electrical and no walls being added or removed.  

Removing a wall could add value to the home in theory, but for some rental areas, having extra rooms helps.

It appears you still have your SBF poster on the wall above your bed. 

Backs are against the wall on the inventory issue, and there is no way around it.

Our lot size is 7300 sq ft and main house is 1700+ sq ft.Location: San Jose, CA- We were thinking to potentially design the ADU such that we could have a wall (or a door) that allows us to separate the ADU into a 1 bed/1bath for self use (or rental) and another part which could be rented separately on AirBnB as needed.

I got that number off the wall!