Awe, a handbook should be the simple version of rental law, imagine what the code reads like.  74 pages of insanity.

If so, how are you capturing the opt in a way that would allow a quick response?

While I realize that if a person really wants to find out who owns the LLC, they ultimately can with some personal effort or potentially the courts, I didn’t want people to be able to easily look up that information online (ie a simple Google search).

Just keep it simple with this...

So, the KISS (Keep It Simple Stupid) principle applies.

Therefore, you could say something like "taxes aren't based on your cash flow," but if I were making such as statement, it would be more like "taxes aren't DIRECTLY based on your cash flow" because that better captures the spirit.You have multiple sets of numbers: 1) [actual] cash flow, 2) net income, and since you mentioned running numbers 3) pro forma numbers (i.e., projected/estimated cash flow). 

The standard to apply is quite simple: Did you accurately disclose the character of the down payment funds to the lender in the loan application?

For this particular property, I went to see it today and the conversion appears to be a rather simple project of moving a door.

Simple rule of thumb is demo, then most inner to most outer, meaning: studs, plumbing/electrical, drywall, etc going to outside, then/together with top to bottom.

We built our personal home from dirt up and while it definitely can be more challenging, you will capture additional value vs buying new if it is done correctly.