It will be a simple structure and our investors are friends.

I never want to be the first to do anything. garbage deal let it go. you are talking about council variance, constructing or renovating a structure, you won't be able to get a permit. not advice but not to by the deal and not to look at the adu as anything but garbage anyone who says any differently should look at a zoning map and show me why and how an ADU makes any financial sense. you are only getting yourself into a very poor situation. tear it down and move on. 

I agree the Solo 401k is a better structure if you are eligible.

If you're working with mobile homes attached to land, you may need to get licensed to do what you're doing when structuring it this way. 

Experience can be the difference in structuring a deal to make it work and ultimately acquiring the property successfully.

Also, you'll need an architect and engineer inspections to make sure the structure is safe. 

I think the other commentators have it right - a HML that is willing to take an investment that is small is probably not vettable and not a smart play - however if you have ~$500k or more to put in, then the legitimate more easily vettable firms would pottentially be interested - and you would be able to see the sophisticated setup, documents, structure etc and be able to research accordingly

I would think, and this has been confirmed to me by several estate and elder law attorneys; as well as tax attorneys, that a tree structure where you have a parent LLC and then wholly owned sub-LLCs under it's umbrella is the correct way to do this. 

Why would the basic structure of a subject to transaction be different in Illinois than it would in any other state?

I've been told the answer is to set up a revocable land trust with the LLC as the beneficiary of the trust and an appropriate trustee structure.