In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

However if you had done a warranty deed (or a special warranty deed if you still have a mortgage on it) instead, your LLC has a claim against you for the issue on the title, and you in turn can go back to your initial title insurance to fix it.Some title insurance will allow to transfer the coverage to an LLC that you own 100%, but not all of them do or they may require an additional fee.

With hopes to build two additional cabins in the future.

- Highly recommend REQUIRING tenants to get Renters Insurance and adding you, as the landlord, as additionally insured.

This is not as passive as other investing but it will help launch your portfolio so that you can continue to invest without needing to work additional jobs.

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

In addition, education can only teach you so much - what type of experience-based learning do you receive when joining these teams? 

If we sense there is a red flag, were asking them to upload additional documents like tax returns w2's etc.

OF COURSE the Contractor is going to say you need to tear it all out and rebuild the wall(s)  because that's the absolute easiest solution and adds additional work for him.

When it comes to housing, the FHA rules apply in addition to those of your state/city.