The basement is only accessible from a side staircase which makes it a very attractive Air BnB option.

The options I am considering are:  Refinance my house and pull out all the equity or draw the HELOC I have on it.The down payment would be about 20% of my total network.Which of these two would be a better alternative to get these funds?

Therefore, resident on first floor needs to make an effort to wake up by an alternative means (e.g. buy a vibrating device).

Alternatively you can refinance and take money out without a tax hit

There are a few posts in the past where members have obtained low rates (LIBOR + spread) on their paper assets (stocks + bonds).This can be very attractive since the interest rates come to ~2.5%.

Those are the kind of rentals that attract bad tenants.You can dramatically reduce that number by posting a statement that you will require a credit / criminal background screening on all adults 18 years and older.

Fresno is an ADU friendly city, and the ability to triplex a SFR is really attractive.

But, there are some very attractive loans you could potentially get.

There are alternative qualifiers like - Alt Doc - 12- or 24-months bank statements.

For some, the attractiveness of the lending rate will be enough to forego the protection an LLC affords.