While in very conforming homogeneous market with plenty of relevant data, that # may be close to an actual market value, it is much more difficult to do in most markets, especially with a townhome or condo. 

That would boring out relevant walls and floors which I can't imagine would be less than 4 figures. 2.

This income CANNOT be counted except in a very rare cases or for HomeReady mortgage which is only for owner occupied mortgages so not relevant here.https://selling-guide.fanniemae.com/Selling-Guide/Originatio...HOWEVER, you mention above that the ADU has a different address, and it is on your tax returns.

@Joseph CatalanoI have a NNN that my attorney now uses & swears by .... if interested PM me & I will give you the relevant information it may be sufficient.We also own in Lewiston NY.By the way my Veterinarian just bought & NNN a Pizza Hut locally.

Granted, I'm not a highly skilled investor but I figured it was relevant to your situation.

Your "lipstick on a pig" analogy might not be as relevant in this space.

The entity structure is not relevant (except for additional LLC fees in California). 

Back when I got my start in real estate investing, ( mid to late 1970s) there were some “gurus” that made sense - their offerings were relatively inexpensive, their teachings relevant, and they always prefaced that they taught one or two “techniques” that could be used in connection with obtaining a firm basic knowledge of real estate principles and finance.  

If they decide to stay, check your local laws to make sure you give them enough notice that you are not renewing their lease.Ignore the crap they are sending and only reply to relevant content and keep that short (eg yes or no). 

Just Google barter and IRS to find the relevant details and forms.