He is correct that a single ADU in a single family zoned area is unlikely to return as much as the hands off cost and is one of many reasons that adding a single ADU in most single family areas is not a good re investment.  

I did not have an answer, i come to ask you please lets set forums for the builder and express your absolute correct and rightful frustration.As the transactional broker im limited to what i can do.

Mostly about things I do wrong, how I correct it, and the lesson I learn.

@Preet Oberoi Purchasing a short-term rental (STR) or tiny home to offset W-2 income with depreciation can be effective if structured correctly.

@Jay Hinrichs you are correct and that is the difference in 41,888 post and my 1,444 post. :) 

From a tax implication standpoint, it can be tricky but if done correctly, not a problem.

In my view they made the correct decision and if you spent significant time recovering this cost, well I think we all know what that is. 

I did my research and requote what would benefit both me and the investor, below is the Finalized CORRECT format of the proposal:Listed price on the property: 459,900MAXIMUM amout of money down on the property: $380,000Method of Payment: CASH OFFER from Investor.

Correct city sewer.  

So I'm understanding this correctly, did you do a cash out refi on your primary residence then took that money and paid off the rental in Dallas.