I'm in the same situation as OP. 

Once an LLC is in the situation, it is a whole new world. 

I think the ultimate situation for what I described above (not the plan, but a possible outcome) could look like this:Rent main house by the rooms while constructing ADU.

There can always be a situation specific to you where your intent was to hold but something cause you to change that. 

Everyone's situation is different.

Let’s say a property is, in its current situation worth $300,000.  

Now the situation has occurred that we need to rent the house out in order to help pay for his long term care expenses. 

And, I think most women would choose a midwife that has gone through pregnancy.Like the OBGYN situation, there is a lot a CPA may not know about the rental business from debiting and crediting some journals and filling out line 242 on some Turbo Tax input form.And, understanding the operating details of the rental business are just as different from preparing a tax return as being pregnant is from delivering a baby. 

I would encourage the use of a warranty deed to the situation that @Steve Vaughan mentioned above.

Quote from @Bob Dole: All,Apologies for the newb question, but I just heard about cost segregation and have been reading up about it online.My understanding is this (and please correct me where I'm wrong):Pros: -accelerate depreciation, front load (vs. just a straight line over 39 years) -save money on taxes because of the depreciationCons: -if I sell the property, the recapture will be larger -not recommended if you flip propertiesSo hypothetical situation:-Majority of our income is W2 based, let's say it's $500k-Net income from commercial rental is $100k-Income from dividends and interests is $100k-Both of us are full time W2, so non-prof real estate (but this can change  -- please see below)So we're hypothetically grossing $700k a year.