Also- in most states, certainly in California, you can get in serious legal trouble for disposing of a tenant's personal property regardless of the situation.

If they aren't doing that, they hire an auction comany to dispose of the property.

My take is, they are basically taking the "disposable funds and applying it to the loan principal.

For larger properties, some of our clients run another cost segregation study at the time of sale.2) Partial Dispositions - Taxpayers can carve out and dispose of components removed or demolished from a building.

When you sell your investment property and execute a 1031 exchange, your suspended passive activity losses (deferred under the $150,000 AGI limitation) generally remain suspended because the activity is not considered fully disposed of in a taxable transaction, the losses continue to carry forward into the replacement property.

This means that you may have to recapture or add back into your taxable income the amount of depreciation taken on your investment property when you dispose of (sell) your investment property. 

I hate stinky butts.DonProbably, but if the price for having a tenant who pays $50/month more than the last tenant on time, every month, is disposing a coffee can full of butts at the end of a year, then I'm all for it.

That’s a solid plan you’ve laid out, and you’re in a strong position with $80k saved, solid income, and the VA loan at your disposal.

My questions are: Am I legally allowed to remove and dispose of the tenants’ abandoned belongings with a junk removal company?

Although then you are looking at demolition and disposal fees and permits probably, in addition to the new permit(s) for the new ADU.