The agent "worked" for 2 hours at the most including drive time to the closing.

Including most of the big malls like The Galleria in Dallas and the Stonebriar in Frisco.   

I just bought my first rental property in Baltimore, MD, and I’m planning to rent it out by the room, including the basement.

Red flags for me include people who are overly optimistic without considering risks or those who don’t seem to have a clear plan for their contributions to the partnership.

Could someone explain that to me or if there’s anyway to deduct those expenses.Not sure how we can explain it, because you already included an explanation in your question.

It’s still a worthy strategy to force cash flow that’s rare to find in SoCal, especially if you can reduce the cost of construction by doing a conversion/using an ADU grant or even buying a property with an existing ADU In general, even if the ADU valuation matches your cost including grants, they are usually not worth it in southern CA in single family zones. 

Lots of other services are included at no cost (advice, doc review, debt collection letters, etc). 

Their advantages include house hacking which includes better finance options and hustle.My last purchase was so large cash negative that the rents were $3k less than PITI.  

was there an agreement between you and your parents that they should share in the profits / losses of the airbnb / property.If there was an agreement, they should also be included in the LLC.It is best to discuss this all with an attorney.Best of luck!

@Nate Pucel The depreciation basis for a rental property includes the purchase price plus the cost of renovations and improvements that add value or extend the property's life.