This is called OPM - other people’s money.

Zillow also hs a "Make Me Move" feature you can click on to see home owners listing their property in hopes of a good offer.I have also seen peopl reach out tp local AFL Assisted living facilities to talk to the Admin or on boarding nurse to see if ay families or people need to sell their home to cover costs.

Mostly people with minimal RE experience are adding a single ADU and they often make that choice based on cash flow without taking into account the negative equity position.  

Add new people to your list every year, rinse and repeat.

But I will say that 1031 will not apply, that needs to be a longer-term hold/investment. 1031 applies to rentals, STRs, MTRs that are held for much longer. 

But what do people think of this offering? 

A sign doesn't draw people like it did 10, 20, 30 years ago especially in a more rural setting with less people driving by to see the sign.

I would not buy a new vehicle just to get a write off - Only if you planned to get a new car anyway(I.E. if your old car is worn out).A lot of people are focused on deducitons but not focused on the income coming in / out.Best of luck!

People have roommates growing up (their family), and in college most likely.

If you haven't already, you should research the stats on Furnished Finder to see how many people are looking for a midterm rental, how many units are currently available and the configuration and prices hosts are offering.