This way you're able to utilize conventional loans, each of you are allowed 10 of those.

I’d search out an established local operator and pay them to operate it.

Especially if you get a long term resident in the ADU and then you might can utilize them to help on your turns of the MTR. 

And to any wondering, no, I don't loose a wink of sleep over using legal tax strategies. yes, I think those who can utilize it have earned it and don't owe a thing to anyone else.

Also, verify ALL utilities (don't believe that dang Realtor for one min Wink ) go to the county for sewer and water.

The key is establishing strong systems and processes.As mentioned earlier (KISS—Keep It Simple, Stupid), there's no need to overcomplicate things.

@Bruce Schussler   I am always suggest my borrowers stop at 60% loan to value when utilizing this strategy.  60% is the loan to value where the loan would qualify for the best possible rate.

To protect yourself, I would establish 2 separate agreements one for the construction contract with the lender and another profit-sharing agreement with the lot owner.

Assets identified in this study include:Infrastructure and Site Utilities: signage, site lighting and utility sinksLand Improvements: sidewalks, landscaping, fences and parking spaces50% of the total depreciable basis was classified as 39-year class life.

Like I said, we only have utilities available in the front of the property and no current permanent structures on the property.