Ensure you understand local regulations regarding permits; it’s usually a good idea for your associates to form an LLC for liability protection, but individuals can do renovations as long as they pull the necessary permits.

To protect this community, they are selective about the people bring in because we all want connect with people who are motivated, committed to the process, and excited about being part of a real estate investing community.

In the manufactured home industry, I've heard more complaints about new homes being bought and installed straight from the factory than consumers buying older homes direct from homeowners. 

I've done my projects solo so far and it has worked out for me, however, it is time consuming and not in the position to invest all into one deal.

There are many reasons that adding a single ADU in southern CA is a less than ideal RE investment (i will post a list at the end) but the negative initial equity is a primary reason as the initial negative equity position consumes the initial cash flow and can take many years to recover.As for converting your home to a rental….

To simplify the existing lease I thought about asking the tenant if they would be ok modifying the addendums to get rid of the resident benefit package and the building protection plan. 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

While an LLC offers liability protection, it does not change how taxes are reported unless treated as a partnership or corporation.

How do I protect myself in this situation, while also helping a relative? 

Now, I see you are in Seattle, which much like Portland, has extensive tenant protections.