Fix and flippers that I know are scared and trying to “time” the market and choosing to wait as they think anyday the crash may come and in their mind.

@Kevin Burke Get educated,Research and Choose A market, Build a team.Keep education and form relationships in the market. start underwriting deals, make offers etc etc. 

The DPP process for building an ADU is not too complicated, but how should we choose a property based on those guidelines not knowing for sure if we will get permitting approved in the future?

So far as they are concerned, no billboards, no manufactured / industrial housing, and there is a demolition delay, were I to choose that route.

I'm not a lawyer, but I'm sure some of this will help if you choose to proceed with an eviction or go back to collect unpaid rent from either party. 

I need to choose a focus. 

If you choose to pay yourself or not that is up to you, but if you are looking to sell these one day it makes sense to factor in the management fees.  

May be worth having something in your lease that the tenants sign that the attic is not considered a bedroom and any and all liability will be assumed by the occupant if they choose to have a person sleep in that bedroom.At that point, you’ve covered your bases and hopefully have yourself a layer of protection in your lease.

Depending on which of those you choose, you'll then do more investigating into areas, budgets, etc.If you want to do your own rehabs, that's a pretty major undertaking that requires a lot of planning and networking and negotiating.

There is a difference between not paying rent due to true financial hardship and choosing to not pay a landlord even though you have a job and money.