Best option would be to separately meter the property 2.

@Jon Ankenbauer you won't be able to keep the land separate from any future construction loan.

- Highly unlikely you'll be able to get separate water meters installed and submeter system probably too expensive for this few of units. - So, that leaves electric & gas.

From tax stand point I would think you can separate from primary and be okay with IRS being that IRS will not be local code enforcement.  

Also, I was thinking about it and I think if you were going to make shared amenities (like fire pit) you probably would be very successful doing that strategy I mentioned for larger listings.For big dates I would have one listing that is both the primary and ADU that sleeps 12+, or whatever the number is, and then you can have the ADU and primary again as separate listings for the rest of time. 

House hacks are fairly straightforward regardless if the units are separately metered.

Hard part with business is separating your emotions from it.

Hey Nithin, one of my client's closes today on a next gen home that they plan on renting out the separate unit.

The break-ins happened on 2 separate SFH that are not located near each other.

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.LEGAL PROTECTION: By placing your assets in an LLC, you are legally separating them from your personal assets.