The primary determinant (beyond the tax implications) is whether the lender will underwrite and permit the borrower to close in a company or require the individuals to be reflected on title. 

The low bids likely don't account for the entire scope of work required to design, permit and build an ADU, including requisite utility upgrades and other site improvements.

We only have permits for around 3000 units to be delivered by 2025, so there is a real problem which is helping our rents along nicely.

I also converted my garage to an ADU (permitted) and is renting very well. 

Hey there, a cheap permit that they give to anyone.

Furnished rentals and STRs can cash flow here but take more time to find the right property for permits. 

A lot of time, younger folks who can drive are great gophers (go for) for investors, picking up permits, etc.

Short term rentals are more challenging in Truckee, as there is a limited number of permits and a currently a waiting list.  

Buy price, included a soil evaluation, drone pics and getting an improvement permit for my end buyer.

If so, does it also tie up the tenant's ability to obtain a moving permit?