So I am stuck in my house for several more years.I had planned on using HML, can you explain why it's off the table?

I received an ail.from the SBA explaining it was now 1000 per employee.  

“We have been getting a lot of questions about [section] 1031 exchanges, and we are working on FAQs that will help explain what the relief is there,” Jennifer Auchterlonie, special counsel to the IRS associate chief counsel (procedure and administration), said April 14 on a webinar hosted by the American Bar Association Section of Taxation.According to Tom Greenaway of KPMG LLP, some taxpayers are confused about how the expanded relief provided April 9 in Notice 2020-23, 2020-18 IRB 1, applies to the deadlines for complying with the 45-day identification period and 180-day exchange period required under section 1031(a)(3) and Rev.

NWI is a great area to invest if cash flow is your only objective, but I don't think you'll see any appreciation there.  

Could you please explain how the personal guarantee work? 

Denise,I object to the assertions in the original post that it "would force every rental property owner in California to reduce rents by 25%".   

Can you please explain it to me?

@Christopher Butterstone Here’s a good article that will pretty much explain most the stuff you’d want to know in an easy to understand way: Real Estate 101: How Rental Properties Are TaxedAnything beyond what this article covers, or unique to your specific situation, and it’s probably best to consult a personal tax professional. 

Reassessing/prioritizing my personal and career objectives.

I'd rather eat the 5k and have it ready when something else invariably goes wrong.As @Nathan G. said, it's probably better to list, market, show, explain, and legalize that it is a 4 bedroom -- put some safety measures up there anyway, like smoke/carbon monoxide, do window guards, fire extinguisher, all those items should be $75 to $100 -- and then go from there.