Not sure what New your state regulations are regarding Evictions 

Be carful with your decision to go ahead with tiny homes unless there is already a established precedent or existing community in your area.

I have some understanding about the liability pros and cons but more concerned about what our existing Mortage company would do if changed all to LLC. 

The purpose of this section is to establish regulations governing accessory dwelling units, in compliance with California Government Code Section 65852.2, and to provide standards for the development of accessory dwelling units (ADUs) so as to increase the supply of smaller and affordable housing while ensuring that such units remain compatible with existing neighborhoods.B.

I did see a notice that the water was shut off at the property due to an existing past due notice. 

As an aside, I don't want to sell my SFR because I have a favorable HELOC that I plan to invest using the BRRRR strategy.SFRMy existing mortgage is $2537 all-in.

In anticipating their questions and concerns it’s important you educate them that a new buyer is required to honor their existing lease through its expiration.

@Brian Christensen Unless the land is extremely valuable, your likely better off building a duplex, which will be significantly cheaper per ft2 than a 4-plex, due to different building code and fire protection regulations. 

Remodeling on vacancy is our big one, but:- Insulate attic- add storage pallets in basement @$x a month- water pressure regulator where the line comes into the house.- water efficient heads- Chicago controls thermostats- coin op laundry was our move this year- big ticket item but I am still a kid when I empty the quarters 👍 - make room for parking on the property- additional $- turn the boiler down.

It's definitely a different animal, only being in existence since 2009, but over the past 9 years, it has outperformed just about anything I can think of.