Just in case you have missed it, the theme of this post is SPECIFICS.Like @Minh Le, I live and invest in the SPECIFIC market that the OP currently resides.  

@Nghi Le I think the LLC formation is the least of your worries.

@Cuong Le I have become good friends with the older couple next door to my rental.

@Johnson H. and @Minh LeI don't know what it is about you bay area investors, but some of the most financially intelligent and interesting posts I read in Bigger Pockets come from you guys.

@Daniel Ye Lori Cline - Blue Ribbon HomesMichael Cohen - Asset Realty Management - Kristen Wallace - Jacob Lei Property Management - 

In addition to this being simply impossible on the budget you are thinking about because of truly massive costs in California (Minh Le is absolutely accurate, if not underestimating the case; I've heard of permitting alone taking 2-5 years in some cases, especially in SF), the bottom line is that you cannot build-it-yourself anywhere in the state with plans to sell the property within at least a year because it is flat out illegal. 

They might be the key to getting some traction with LE.  I

@Minh Le  I know of a lender that only uses a desk top valuation. 

@Nghi Le I said it would be tough to find and encouraged OP to partner up for best results. 

@Michael Le I agree.