Today the work is finally done and the second unit's tenants moving in tomorrow and he has been haggling me to pay him his last draw combined with some out of scope work for a total of 8k.

Using home equity without selling/refi/heloc is known as cross collateralizing, or using the combined leverage in both properties to get a loan (in your case, using the current equity and if there's enough, buying cash for the new purchase). 

You have a unique combination of experience which can give a different perspective on real estate.

Tax court throws out cases regularly because you need to spend more time on REI than any other combined activities. 

Get the 2nd one paid off and combine the 2 of them for a LOC (you can add more paid off properties and increase the loc amount as time goes on).

The resulting large purchase amount (typically in excess of 40%) combined with poor cap rates result in coastal Ca having some additional hurdles.  

I rent the basement and the DADU in the back for a combined cf of $3750, reducing my monthly costs (PITI + Utilities) from $5800 to $2100.

@Chris Clothier  Chris is the preeminent expert in the turn key space and he will tell you his company learned this very early on and left the space.. there is NO money in it for the investor and all you do as a TK operator is get your butt chewed when your clients tenant trashs the house for yet another time.think of it logically .. this is the cheapest housing the cheapest rent.. and what does that combination bring you.. it brings you the roughest tenant.. botton line end of discussion.If you go .. go on a Saturday.. mid week things are quite in almost all neighborhoods.. you would be much better off putting 50% down on a 100k TK .. that rents for 900 to 1100 that's a totally different renter, not that you could not have a bummer but you mitigate it dramatically.

Most of my clients are looking at a combination of deep value add over 3-5 years as well as potentially getting some seller carries for 3-5 year terms.

My partner and I used a combination of private money, hard money, and a bit of our own to get this deal done!