As a few mentioned, depending on your situation you might have to do a DSCR Cashout (vice conventional investment), and with hard money loans often there is a pre-payment penalty.

Damage to the garage, depending on how much and what it is, charge them and get it fixed. 

Depends on type of facility.  

I would like to pull out equity from the homes to build either a house on each or an ADU (they are zoned multi-family) depending what makes the most sense on returns and what is feasible.

It depends on the property because each has its own risks.

but that's dependent on your job, relationship, goals, commute... we can't advise you on that.

Whatever you choose make sure to read the ENTIRE fine print of the policy.

So depending on if you are using it personally and want to have it pay for itself or you just want cash flow will help determine where you should look and what type/size home you want to consider.Please reach out anytime and let me know if I can be of help.

Depends on what you're trying to accomplish. 

Quote from @William Christiansen: Quote from @Charlie Hardage: @Carlos SilvaYa, it definitely works depending on your cash flow and numbers.