Also keep in mind that adding sqft will likely increase your taxes and local regulations might limit the use of the ADU. 

Louis offers affordability, cash flow potential, and emerging market opportunities but also presents management challenges, unfamiliar markets, travel costs, local regulations, and crime rates.

The laws apply to owner occupant but puts fear of regulation into any lender. 

Seattle has become more lenient on ADU regulations because of the housing shortage. 

note some localized regulations require creativity to envision

Do you know if the city has any STR regulations? 

I've operated MTRs in several markets and have seen 75-80% occupancy on MTRs that can't be rented as STRs due to regulations (ie we don't rent them as a hybrid MTR / STR strategy).

Therefore the federal government can regulate the transaction.

Remember, before investing in a property, it is important to research local regulations and conduct thorough market analysis.

Whoever creates and sponsors the syndicate needs to comply with the SEC regulations for securities offerings UNLESS the offering qualifies for an EXEMPTION from registration.