To reduce your tax bill, consider qualifying for Real Estate Professional Status (REPS) by spending 750+ hours on real estate activities, which reclassifies losses as non-passive.

What I will do is attempt to find a QUALIFIED substitute tenant, credit the original tenant with the rent paid by the new tenant LESS one or two months fee for the extra work and effort, but I will NOT release the original tenant from liability should the substitute tenant default.Look, the bottom line is that renting to tenants is a business, just like any other business.  

Especially if you get a long term resident in the ADU and then you might can utilize them to help on your turns of the MTR. 

I think there's potentially a different feeling when you convert a personal residence to such an investment property versus purposefully buying an investment property. 

Investment Info:Single-family residence buy & hold investment.

You are buying a primary residence so should be able to take advantage of an FHA backed loan.

Investment Info:Single-family residence buy & hold investment.

I just put some at my personal residence.

I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.7.

mDo you have to accept the first applicant that qualifies?