I believe any value add could be done to the kitchen cabinets, appliances, flooring, and adding a fence.

For value-add opportunities, bathrooms and kitchens are where you'll see the most return on value because this is where you can put most of the shiny and pretty things buyers like to see in homes.

‘This new kitchen with granite countertops is the only one I have seen in this neighborhood, after visiting 5 properties in a 3-mile radius.

Duct burst pressures are rated 3x high yet than design pressures, and closing a register or two will not increase the pressure to the point of failure. 

(Tear down a wall renovate the kitchen and bathroom) AND STILL HAVE A LOWER MORTGAGE3.

With the exception of houses being much more expensive and being able to get 70% of ARV here in San Diego, there's not much difference.However, a deal here in San Diego is more psychological because of the price rather than the risk/reward.For example, to build any house, you'll pay about 10% for the kitchen whether it's a $100K house or a $1M house.Plus, if you find a $5M deal that's 70% of ARV, you'll find someone willing to partner with you.

or any buyers  I wouldnt put the first picture as the kitchen, some people might click past it and assume condo.

Is mezannine debt a common way of funding all of the development costs (Entitlement,Design, Permitting, etc.) before raising capital for the construction?

Make your own landscaping choices, contract, and design.

Looking at a place that has a SFH with a detached in law suite (3 rooms plus bath, no kitchen).