If the new administration focuses on boosting housing supply or implementing tax incentives for real estate, we might see positive opportunities.

LTR:The STR loophole can be a huge tax advantage because you can use depreciation and other expenses to offset your regular income, which is a big win.

I'm out on site regularly for that project for my W2 job, there are rumors of it growing in scope too.

Assuming a similar scope of work for a 1000 SqFt house would you say say $25 a SqFt would still hold (maybe $25-40 with a regular handyman or crew). 

The other options you are playing with fire as using a HELOC that is paying interest is essentially buying with 100% financing.Having no skin in the game has always been a high risk strategy and people were able to get away with it the past few years due to the money supply and inflation but I would not use that as the measuring stick.

Set up a clear scope of work and schedule regular video check-ins with photo updates.

He's a really smart guy when it comes to supply, demand, rent control, and overall investing

I hear appraisals associated with ADUs regularly in southern Ca and they are typically less than 50% of hands off cost.  

Not to mention, solar panels can also be a cause of roof leaks and require regular cleaning to maintain some level of efficiency which is not great to start with while also getting worse over time.

Quote from @Emory Clayton: I'm confused as to how to screen Sec 8 tenants compared to regular 'market rate' tenants.