If privacy is a concern with young kids at home, you might look for properties with separate entrances or a layout that keeps your space distinct.You mentioned having substantial equity in your home, which is a great resource.

A basement with a separate entrance but no kitchen is not considered an ADU, and therefore does not have the 120 day limitation. 

It gets complicated if you use a HELOC towards two separate projects as you would need to pro-rate the interest across the two projects.However, the answer would be yes, they would be deductible.

We have had voucher tenants in two separate markets and have found them to be our top performers overall.

Not saying it can't be done at two separate title co's but it's a pain.....and I wouldn't recommend it just starting out. 

I want to be able to keep business finances and liability separate.

There are separate loan products for construction of an ADU (checkout Derek @ThatADUGuy on Instagram) to learn more.

It may be hard to hear/read, but let's separate the emotion from the facts.This makes sense on why you're so offended.

I think if you are going to keep all three parties involved as owners of the deal long term then you need to separate yourself as a renter and a contractor.

Purchase price: $630,000 Cash invested: $120,000 Gutted this property, brand new electrical, furnace, propane, finished basement to create separate unit.New garage with rental unit.