And with you using one of the units as an office would not eliminate the fact that you are 'disqualified person'.

Does having an LLC simplify any of that vs doing it as part of my personal return?

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.LEGAL PROTECTION: By placing your assets in an LLC, you are legally separating them from your personal assets.

Upon seeing this name again, I looked it up online and found that the person it belonged to had a number of articles from our local news station for a number of crimes, to include forgery, identity theft, impersonation, etc. 

The cash flow can appear good on garage conversion ADU additions, but the value being added by ADU additions in SFH areas is even lower than this amount.  

It requires deeper conversation if you are serious.

I personally like Arcadia which is in between Scottsdale and Phoenix.

The builder will need to be approved by the Bank/Lender or the bank/lender can provide you an already approved builder they have used before in that County.Once the builder is approved the Bank/Lender will have a initial meeting and set up an agreed upon draw phase based on the work that will be completed in phases.Best thing to do is have a conversation with a seasoned Banker or Loan officer to start an application and set up step by step plan.Feel free to reach out if you have any questions I am always happy to help and talk REI.

I personally think this should be the default setting and should meet the requirements. 

If they have potential I would like them to be sent over to a friend of mine (who's in sales and recently got his real estate license, he's got the perfect personality for this) to try and close the seller.