This is accomplished by transferring the property into a land trust and having your attorney sign as a "nominee trustee" before having the role of trustee granted to you after the signing.

The improvement aspect of real property (as opposed to the land) does depreciate.

Next came what I would call 'land speculation' (SDIRA purchases unimproved parcel and subdivides or does site improvements, then cashes out) followed by a distant last place - rental investment.

In Europe we have a family business doing land development.

As it happens, I have been researching parcel of land in Harrison County, MS.

Willis with Lone Star Land Law. 

Additionally, there is around 0.4 acres of vacant land at the back of the house.I'm considering constructing either one or two additional units on this vacant land and renting them out.

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.

If you’re concerned you could ask for an appraisal which will take into account the value of the land, the value of the building, and the value of any rental income if any exists.

I’d take the next actionable step because it has been my experience that after receiving the paperwork most tenants will shape up.