But then I was thinking to myself, the lot directly behind my current rental, in a fairly mature neighborhood, is empty. 

.- Property purchased in July 2024- Rehab not complete, and I got a local person involved who meets them on site weekly as my representative on ground- Due to his observation, we discovered foundation issues that need correction.

For what it's worth, I found this on the HCD site under Accessory Dwelling Unit Technical Assistance memo dated Jan 10, 2020.

She's thinking of giving it to him out of desperation but doesn't want to since all the mortgage was paid out of her pocket.

Stuff happened.If I were to sum up the one thing that I think investors aren't doing enough, it would be getting real-life reps.

I would think some others wouldn't be strict on such a requirement.

But maybe I've just missed the threads you're thinking about.  

We just think by taking cash out nontaxed and still cash flowing, while still having tax benefits, seems like a good idea.

I might be totally wrong in my thinking, what am I missing?

I think this arrangement is better than nothing or me taking her to court to only get the land back.