As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

To minimize taxes, consider the following strategies:1031 Exchange Before Dissolution – The corporation could complete a like-kind exchange, allowing investors to roll their ownership into individual properties while deferring capital gains tax.

Where is the property located.assuming the seller added the ADU and did not disclose the ADU in disclosure forms, you may have recourse (depending on the rules of your jurisdiction) but it may cost you some legal fees. 

You really don't need that LLC until you pay off the property and it's questionable if you need it then as long as you maintain your property and have correct insurance.Yes to wind insurance, not sure about hurricane.I use Foremost STR policy for one property.I am about to switch to USAA (retired Navy) for another because they quoted a policy that was 3k lower than what we have.

Just do a little bit of research and connect with a great property manager.

And the hardest part of all this is finding sufficient labor to rehab/manage the property. 

Long story short, I have no primary home and the property the guesthouse is being built on is a LLC with 3 years remaining of 20k PPP.

I own a home and have one rental property in Southern California.

Phoenix has a pretty diverse market, and while there’s no official A/B/C/D breakdown map, you can generally categorize areas based on price points, rental demand, and appreciation potential.For BRRRR, you’ll want to focus on places where you can still find properties at a reasonable price, add value through renovations, and get solid rental returns.

I am planning to offer an equity position to a friend in a property I am currently in the process of refinancing.