Here in Cali we don’t even have a date on when we can hope to start an eviction process.

Rents will rise much at a much faster rate, so the challenge of finding cash flow (enabling more investors to become "capable") will gradually recede as SFR cap rates gradually expand - it will be a process, not an event - over the next few years.

You sound like the brave side of the coin in that you did due diligence and respected the process.  

For your first rental property, starting in an area you're familiar with can make the learning process easier, as you’ll better understand the market and can handle issues directly.

The bank they are using with that offer is now saying my site prep bid came in way too high and not approving me (so far. still in process).

Even so, they were able to help at times when I had technical questions about the legal process.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Many I have seen have more of a Reward over Risk thought process, get $ quick mindset basically but don't realize the risk, time constantly following up and sleepless nights wondering and waiting all for a small fee. 

I did a "blind" assessment where I paid/reimbursed a close family friend to go in as a guest because there were a lot of details I wasn't privy to- and wanted to understand (the whole experience and process from the guest perspective from the initial inquiry, emails, etc.).They shared the email communications (some of which was glitchy or not quite as good as what I'd expect, or told me of delays in receiving responses).

We process, underwrite, close and fund the loan.