They must be claiming it to be a primary.What can you do? 

It protects property owners from potential claims or liens that could be placed on their property if the contractor fails to pay subcontractors, laborers, or suppliers.

Assume my marginal income tax bracket is very high, and mortgage rate is 5.25%.

States like CA, NY, CT, NJ, MD are notorious for high sale price homes, higher taxes and hard to cash flow.

They don't all offer the same servicers (default management, document services, tracking of taxes and insurance, escrows, etc.), but I am with you that communication and competency are key.

Prioritize properties with strong rental potential and set aside reserves to handle unexpected costs.Finally, familiarize yourself with tenant laws in your target market, especially in Portland, and consult a real estate-savvy CPA for tax efficiency and legal considerations.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

It is better suited to someone who loves Costa Rica and would like a property that they can spend a few months a year at if they would like and still cash flow after all maintenance and utilities and taxes.  

Because the legislature has passed protections for unpermitted units, a tenant should not be able to make any claim if it is a safe unpermitted unit.i agree with your sentiment on getting the ADU permitted, but not for the reasons you stated.