On paper sit down with a realtor and an REI investor and build a scaling template so you can see the path ahead.  

Just a heads up for future reference.

Your property management background will give you a head start.

In retrospect I would have spelled out the construction process more clearly in writing ahead of time.In your case the existing tenant is getting no new value so there is nothing for them to gain with this project.

@Staci Kou I think it's a good idea to show them the lease ahead of time and they can show it to their parents if they like. 

We also have our main subcontractor and our driveway guy that would like to rent some space for their vehicles and materials as well. 

You walk away slightly ahead with the rents collected, 2nd lender loses at least $50k of his $95k in selling costs, and other expenses.

I totally get wanting local insights in the Sacramento area; it can really help.With your hands-on experience in flips and rentals, you’re already ahead.

I am concerned about parking and how that would work parking more vehicles along the street. 

So, instead of wholesaling your next property to a single buyers list, try looking “outside of the box” to find cash buyers for real estate deals.If you already know where to find cash buyers, you are ahead of the game.