You can typically change the way the entity works - may or may not make a tax difference, but you're only 6 months in so I imagine you're showing a paper loss anyways? 

Typically, conventional loans backed by Fannie Mae or Freddie Mac are eligible, while government-backed loans like FHA or VA loans often are not.

Here are some questions that I would typically ask a CPA:Are you experienced in working with my industry?

:)As for LTR rental terms, usually we sign a 1 year lease where tenants are expected to pay Electric and Gas if applicable, while the owner typically pays water/sewer/trash with the city. 

Self managed HOAs are usually undercapitalized so you want to take a thorough review of the condition of the community to make sure there isn’t deferred maintenance because you might get hit with a special assessment if the board isn’t setting aside cash for those capital improvements.At face value, taking into consideration my typical financial objectives, I wouldn’t do this deal unless it was a much lower price.

Does Hard Money typically cost 30-40% of the purchase price?? 

Small businesses are typically valued at a multiple of SDE.

What kind of returns are you typically seeing on these deals?

The reality is the land has value.I believe you are typically far better purchasing a different property with conventional financing than adding an ADU.  

@Thomas FarrellRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?