The amount of monthly income will depend on your goals and the rest of the deal design.

Focus on functional and aesthetic improvements that align with the neighborhood's standards.Managing the Property:1.

For extra formality, put it on a nice document with your letterhead.Re: Non-Binding Letter of Intent to Purchase Real Property Located at [Property Address]Dear [Recipient's Name]:This non-binding Letter of Intent ("LOI") is submitted by [Your Name] (the "Buyer") to [Recipient's Name] (the "Seller") with the intention of setting forth certain preliminary terms and conditions for the proposed acquisition of the real property located at [Property Address], inclusive of all improvements, appurtenances, and fixtures thereon (the "Property").Purchase PriceThe Buyer hereby proposes to purchase the Property for a total consideration of $[Amount] (the "Purchase Price"), which shall be subject to adjustment based on the results of the due diligence investigations and final negotiations.Earnest Money DepositContingent upon the execution of a definitive Purchase and Sale Agreement (the "PSA"), the Buyer shall deposit earnest money in the amount of $[Amount] (the "Earnest Money") into an escrow account designated by the mutual agreement of the parties.

Boom.I take this tact on many high priced or specialty or design items, like countertops, light fixtures, appliances, large glass or window replacements, mechanical anything, etc….Contractors have their preferred suppliers who they know and are reliable, but are not always the best deal.

For the IRA LLC it's a special purpose LLC that's created to be designed by the IRA. 

The words or design isn’t perfect?

Treat this like a business (because it is), keep operating expenses as low as possible while making your spot aesthetically desirable.

Find architects or designers, engineers of all types, general contractor, etc. to design the project, and know how to keep the design where it's functional, cost effective, but has appeal.

I would check that language clearly in SF's ordinance because many times approved ADUs don't change the designation and most programs go off the parcel or APN designation, as long as the additional ADU was added legally.

This loss is designated as non-passive loss in Schedule E and hence deductible from ordinary income (W2, 1099B stock sale, etc).I see no state returns simply because of no income as well as the losses being non-passive and hence deductible from ordinary income.How is your CPA suggesting to track the passive losses without filing for state return?