They buck the passive rules for 469, and are considered active.BUT - As with any other business, to deduct the losses the owner must materially participate.Material participation is achieved by:1.

@Mic Salvador,Doing BRRRR out of state is going to be pretty tough, unless you’re willing to move there and live on-site for the duration of the rehab and leasing process.I run a turnkey operation out in Alabama and I saw that @Min Zhang already recommended turnkey as a possible alternative—have you given that any thought?

But really the only info out there on them is marketing material (I'm talking to you Brett!).

Ownership and usage would be in question; thus they would be tied up legally.Concrete material components are mainly sourced in the US.

That means no HOA neighborhoods, which rule out many places.  3bedroom might make it tough to work, unless you're sleeping in the laundry or garage and renting full 3bedrooms. 

Also come from the construction industry on the material manufacturer side.

This is my 1st post and I am so incredibly thankful that a forum like this exists and for any information to help guide me through this tough decision is so immensely appreciated! 

It shall be delivered full at the end of your lease or the amount to fill will be deducted from your security deposit.Something like that.Oil is tough on tenants because it costs a lot at a time to fill.

.- 2 floor ADU is expensive and is tough to do due to the height limit.- Most people kept their ADUs under 750sf to avoid the impact fees- For subdivision, it wouldn't be applicable in your case due to your lot size.Feel free to reach out if you like to discuss in details.

Are you estimating that building will be more profitable with the higher material prices and the added challenges of getting a certain type of financing together with the time constraints to minimize holding costs?