It wouldn’t surprise me however, as many of the fees I’ve seen associated with the program in question are ridiculously high (like $10k to set up an LLC when it should cost a small fraction of that, $250 for a promissory note while most title companies provide them for $50-80, $1k+ per file for a transaction coordinator’s services on a cash deal (typical cost is $200), etc.).

In theory they should turn a profit each month, and if they do not they still have to pay you the set rent as well as the utility cost as well as up front cost like furnishing. 

The property cost a 114K and value of the house is about 130K. 

If you aren't planning on selling the property anytime soon, it won't matter much but someday could cost a lot more than that to clean up the title than what he's asking for.

This causes not as much to be produced and what is being produced is more expensive because of labor cost. A

You will still need to manage the laborers yourself and rent/own any specialty equipment (particularly for tile demo) which will add to your overall cost as well as your own time invested in the project.

If I am able to outsource most of my advertising efforts (at about the same cost as doing it myself), and know that my money will be spent in an effective manner and generate leads, without me needing to lift a finger, I am now able to focus my attention on other areas of my business.I am just beginning my sixth month within the system, and the results have been better than I anticipated.

With ADU in Contra Costa County, there are sewer fees, water meter upgrades, and possible electrical lines.

The full gut may be a lot to take on for your first investment project and will likely cost a lot more than cosmetic. 

Laminate is never used on new rental projects here.It sounds like you already have a solution to your tile problem that won't cost a lot, so I'd consider going forward with that as well.If the swamp cooler still works fine, keep it as long as it makes sense and save up for when you need to replace the system.