@Adam Luepke - Great first house hack! 

You are missing my point on taxes.Scenario 1:  Your partner buys the house at the same time you put your cash in.  

Here in the USA you have to be licensed to build a structure that will house someone else.

Just bought 3 houses last week from a builder. 

The buyer of course believing he had purchased the house paid a visit to the tenant, who of course called me.  

I'd level up with a BRRRR, live-in flip, or house-hack before jumping into a challenging renovation.

When did the HELOC on my house with ADU, the first appraiser used option one and I demanded a new appraisal where they would give me a flat value.

This would let you rent out the house for the next 3 years if you wanted and still get to take the gain.  

My plan for this year is to remodel and upgrade the house to then put it to cashflow either via short/long term rental.

When I tried to get it when my side of the family found out and tried ti take over reverser mortgage payments to bank because she had died it was to late so they sold the house to Hud and then other reverse mortgage companies but a relative still lives there so they can't kick them out.