It sounds like you've outlined a comprehensive plan for getting started in real estate investing with $55k.

I plan to live in the ADU and rent out the main house.

The issues get a little deeper, but the key takeaway is that careful planning is very, very important.  

On paper, the plan here is that you get some rent from Section 8 directly and some from the tenant.Are you still getting any rent from section 8 ?   

I was planning on focusing on small multifamily properties (duplexes, triplexes, and quadplexes), but I'd be interested in hearing people's' thoughts on the best investment type for the area.Thank you for your time.

Each investor who evaluates your deal will have their own plans for it in terms of rehab & contractor pricing.

And the credit.... well it went off our personal credit( again the idea of spending another $3000 for this was so they would transfer our new found personal debt into business debt so our credit scores we worked so hard for would go back up.

As for the rodents, call a company and have them come out and deal with it...take photos before and after so if the tenant does something (ie puts out more rice), you can show that the tenant is deliberately doing things to attract rodents. ya we planning to call the health inspec saying the fridge is their to use but if they make it dirty and smelly we cant control that and its their responsibility.

As a businessperson, I'm not planning to hold any mortgage for 30 years.

Are you bullish or bearish in the short and long term, and how are you planning to adapt?