Could you provide guidance on how to navigate this situation from both a tax and mortgage perspective so I won't have issues getting my next property?

This implies residential units can be built at lower costs and provide better return than building a single ADU.11) adding an ADU to SFH can make the SFH fall under rent control.

We require them to provide us copies of their licenses and be added to their liability insurance before assigning them any work.

If you sell your only overachiever to go with a more leveraged position, you could have 2-3 properties that may cover themselves or even provide a little profit, but when the rental markets shift (and they do), now you have 2-3 properties that all require you to supplement for their shortages. 

I wouldn't imaging the state where the entity is registered makes a big difference for most buying and selling purposes as long as you can provide all of the required documents for title purposes.

We provide everything you need to build generational wealth under one roof—property management, construction, experienced agents, and connections to top lenders.

A cash-out refinance provides stable financing but resets your mortgage term.

Just keep in mind that there are further steps you'll want to keep to minimize the possibility that your entity is ignored for this kind of personal liability (say, if you were the person who didn't properly clear snow, or if your finances and the LLC's are comingled).And I agree with @Chris Seveney, insurance may provide adequate protection based on what's available to you.

Upgraded the backyard and re-styled and provided high end furnished to the home What was the outcome?

What advice can you provide if any.