(My assumption is it may be tough to prove enough material participation if using someone local to manage.)Two things worth noting:1- I'll be discussing with my CPA in-depth soon, but would like to hear other's experiences on this.2 - The main reasons I'm looking to STR's is the tax benefits (Cost-Seg) & appreciation that comes with buying in these areas opposed to the mid-west where I look for long-term rentals..

If you're in a strong market, like the one I am and you can get a property rented out in a weekend while you have current tenants in place. therefore 0 vacancymy most recent turnover cost me $300.I've had other turnovers cost me $4k - that was mainly because of bad tenants who purposely trashed my place. 1 month in lost rent + repairs

Depending on the size of the ADU vs the main property, you would probably be looking at either a "heavy rehab" loan - or a "ground up construction" loan.

Standardizing these elements will allow you to expand without reinventing the wheel.

Been around a lot of that mainly on smaller SFR deals. 

First I want to thank you for reading, I am new to the investment market and the idea is exciting and terrifying at the same time.A few facts:Purchase Price: 325,000Rental Income Estimate: $5250Property details: This is a 3 door property:1. 1/1(main building)2. 3/2(main building)3. 2/1(separate building)Repair estimates to get all 3 properties up and running: $145,000 - $200,000I do not have a ARV since its very unique there is not anything we can compare to but I am looking to get a third party appraisal.Plan is to do a mortgage for the property with cash down payment.

To the best of my knowledge, and I am not an appraiser so I would recommend you verify this, but I have been of the understanding that there are 3 main requirements that classify a bedroom, a bedroom.

However, Mario dropped us of at main checkin which was not correct for BPCon.  

By last night and early this morning, I did suggest that they evacuate but that they could stay if they didn't have any other options (surge is my main concern, we are on the 18th floor so I don't think they will have an issue with that and we have Miami/Dade qualified hurricane protection)...BUT, I was very forthright that they would likely be without water and electricity and stuck on the 18th floor possible for some time.  

That will be your main constraint when making the decision.