@Pat Aboukhaled I would ULS (unit lot segment) the primary house and include a clause in the call option that would prevent them acquiring the DADU.

Buying in a quality area and being thorough with your tenant screening are the best preventative measures you can take to avoid that situation from arising.

It can be a normal problem but you can prevent it with some certain measures.

But then we have to get into talking about the passive loss rules, which may prevent you from actually being able to claim a tax loss if the deduction is more than your rental or other passive income.Or you can claim the actual expenses (gas, insurance, etc) for the vehicle and regular depreciation, proportioned by the percent of business use of the vehicle.  

Keeping everyone aligned—lenders, inspectors, attorneys—prevents bottlenecks that could derail the timeline.Lastly, tackling big tasks early (like ordering inspections or raising equity) is a game-changer.

And also being next to a base Im thinking about short term renting, or Air BNB How did you finance this deal?

The rules are designed to prevent related parties from engaging in exchanges that shift high basis property for low basis property, followed by a sale of the low basis property, effectively "cashing out" without recognizing gain.If you sell a property to a related party as part of a 1031 exchange, both you and the related party must hold the exchanged properties for at least two years following the exchange.

Salt air can deteriorate houses and components faster than markets without salt air.The final piece is finding a market with a quality team or teams that I like and trust.  

Let's clarify the air-conditioning equipment.

It is imperative that you take this action to prevent fines and legal issues.