Quote from @Sean O'Keefe: CPA, but I should disclose that I might be biased on this :)  haha what states u work in bc I'm in Oregon 

The lot is outside of the city limits (just barely) so I'm only familiar with city zoning regulations, not county or state regulations.

In fact, they stated that the total amount “covers the charge of the replacement purchase and labor to install it under one price.”

Pay Capital Gains Tax: If the investment isn’t sound, paying the tax (15-20% + state taxes) might be the better option.4.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

My mentor did say that he has purchased them before and had the owner/ paid the owner to sign something that stated the owner did not want the property back.

New for 2025, just so you know, the state has enacted a short term rental tax of 4.5% on stays of 31 or fewer days. 

I also get the same story from national lenders that state virtually everywhere ADUs are getting values far less than hands off costs.  

If the lender states that there is no seasoning requirements to refinance based on ARV, the rates will generally be a bit higher. 

@Noah Schulz what does the lease state about payment and what period the payments cover?