If family lives in the main home and friends stay for free in the garage, the property remains a primary residence, but there’s no rental income or tax benefits.

@David Hudgik - I am an investor friendly agent in the area.

Diversify into cash-flow-friendly markets like Indianapolis, Birmingham, and Florida.

If you want to remain friendly with the neighbor, I'd suggest checking out his unit and then running water all over the shower walls and putting some water on the floor around the shower/tub "pan" and around the toilet.

I always suggest starting with friends and family and even ask them if they know anyone who might be interested.

find a friendly agent and talk to them.start with a house hack if you can.

Meaning are there states that are less friendly to lender / note owners?

My friend who is in same situation get response back after emailing him.

Louisiana is also a very landlord friendly state and that doesn't hurt either.I have been looking at the rental data in New Orleans lately and it seems like there may be a surplus of rentals available, most likely due to the STR rules causing people to switch to regular long-term rentals.

I found 4 acres owned by a friend who wanted to sell.