This structure helps ensure that if one property faces a lawsuit, the other properties and their income streams are protected.

@Steven D.,Well

For non-primary residences, they have to follow all of the following rules to receive a permit: - the property must be a minimum of one (1) acre in size (designed as a precaution to disturbances)- The building standards of the underlying zone district must be met - Adequate parking is provided - Defensible Space requirements are met - Valid water and sanitation must be demonstrated - No more than five (5) bedrooms are in the dwelling As time goes on, they continue to become more strict on the rules listed above here, and are actively regulating it.

It sounds like they have money, and it sounds like in exchange for that money you're setting them up with an income stream.

Pace has built multiple income streams that appear to be helping investors, but are really designed to make money for him.

Have a separate bank account from your personal, make sure the operating agreement spells out how to value if anyone exits, who can buy into it, you can vote to not distribute funds- if your sued they can come after your property but also your Cashflow stream.  

It's technically not an ADU if it's the only property on land as it's an accessory dwelling unit to a main unit.

I have 3+ years of rental history with these income streams. 

Cash out now that the craze is hitting main stream.

If you found a way to add additional revenue streams, such as title, mortgage, etc., then you may have a reasonable business, but otherwise...why would you do this model?