Obviously I plan on increasing his rent to market value and switching utilities but hesitate increasing it past 20% due to the fact that during our walkthrough he seems like a solid tenant with a very well kept unit and even bought his own washer and dryers in the unit. 

Is it fair to assume that the added sqft from the ADU conversion adds value to the property? 

For items he stole, figure out what their value is (not replacement, but how much it is worth given its age and condition). 

I am looking for cash flow positive storage building in Texas, off a major highway, with value add potential, preferably in North Texas (Sherman/Denton/McKinney), Central Texas (Waco/Austin/San Antonio), West Texas (Odessa), or greater Houston area.  

lower the size of your unit and therefore your build cost per unit, your sale price will go down but focus on density and get familiar with zoning and what your city will approve. my best suggestion is to do it in downtown districts where there is unlimited height and unlimited floor area and you can build every square inch of the property and reduce parking because of proximity to transit. property values are higher, rents are higher in downtown markets, there are just too many economies of scale compared to suburban deals.

Genuinely curious because it seems like an awesome place to invest especially if you're going to occupy the property for a weekend or two. 

For Austin, you are about 5 years late on boarding that ship (you should know this having flipped there) at a value and return that looks and smells good.

Add value to them while getting exposure to development.

Is that included in the divorce calculations or are you just taking gross appraised value?  

I currently have a rental Condo with 232k owed but valued at 400k+ in CA.Looking for a rehab rental properties in AR/TN and want to use a HELOC for rehab costs.