They’ve come down $400,000 but they’ll definitely have to come down more before anyone will probably get interested.  

Will definitely report back should I sign up.

How would I go about the process of converting this detached garage/storage area into a legal and permitted ADU?

Quote from @Rohit Sareen: An LLC is useful for two things: anonymity and legal protection.

Agreed, definitely want to narrow my focus and become a subject matter expert.

Definitely you have the choice to focus on design over utility.

Do I have legal issues to deal with to raise the rent price? 

Maybe this topic has already been covered in this forum; please feel free to direct me to the previous posts.BRRRR deals are definitely not easy to find in Memphis TN because of the amount of competition in the area.

If you are already investing out of state then you have overcome a large hurdle and you could definitely find a market that would give you both appreciation and cashflow if you were willing to put all the money you pull out back into a deal.

I may be going into litigation with them and I'm looking to connect with other investors who might be interested in joining together to help save on legal costs.