You can always convert it to an S corporation if the income / cost / benefits make sense to do so. 

Like the car salesman/hustler who converts “ups” at a super high rate; or the guys hustling oil well participations over the phone.  

Consider alternative exit strategies, such as converting the property into a long-term rental or selling to an investor.

As far as how to find a property that has a basement apartment or a property that you can convert a basement into an apartment… this may be somewhat difficult.

On very heavy rain days we always get a lot of calls due to some basements flooding.It's just the nature of the beast and nothing major.Maintenance pumps out the inch or so of water fairly easily and quickly.Property management walks (For free) the property yearly before the lease renewal.We had push back on charging $250 for a 2 x yearly Property Condition Report through Inspectify but are now having a "click out" option so we can't be blamed in the future for deferred maintenance.It's incredible the lengths that we need to go through to protect the company from such instances.With that said, we could have done a better job with preventative maintenance here.Investors reading, "Yes" we do our best to cover absolutely all angles as your eyes and ears, heart and soul on the ground.

I spent $12000 converting the middle unit back into the third unit and rented that for $850.

Lakeview East is desirable and it can convert a net-zero property to cash flowing one.

We believe this was a construction work trailer someone converted into a house.

My debate is this.As a general statement the rental property cash flow here in Los Angeles is VERY challenging to find.I am looking to buy a property with a detached garage and convert into and ADU for helping to offset to mortgage.Crunching some numbers up on $1M property with and ADU assuming (rough numbers) main house brings $5,000 and the ADU $2,000 I’ll still be negative in the deal after all expenses (vacancy, capex, repairs etc…)However if I will use it as a Sort Term Rental it will be cash flowing beautifully.What’s your take about buying negative cash flow long term but counting on AirBNB to bring in the positive cash flow?

Converted it to a rental in 2002.