This loss is designated as non-passive loss in Schedule E and hence deductible from ordinary income (W2, 1099B stock sale, etc).I see no state returns simply because of no income as well as the losses being non-passive and hence deductible from ordinary income.How is your CPA suggesting to track the passive losses without filing for state return?

I would check that language clearly in SF's ordinance because many times approved ADUs don't change the designation and most programs go off the parcel or APN designation, as long as the additional ADU was added legally.

I definitely could've tried to maximize my monthly income by renting the property by room, but with HOA restrictions and my inability to comfortably find a property manager that manages rentals by the room were my biggest reasons to rent out the entire property under one lease. 

I prefer to avoid kludgy systems that weren't designed for regular, high-dollar transactions like rent payments (Venmo, Paypal, Zelle, etc.).

This would require a new design.

I continuously read and listened to podcasts, even during commutes and at work, using custom headphones designed like construction earplugs to facilitate my learning.

All-in costs, including design, survey, permitting, construction loan interest, land, construction will be $360,000.

Ikenna,Depending on where you are located and your comfort level you can find a lot of great deals in multiple states. 

I know some people are against buying properties that won't have a positive cash flow, but I'm comfortable with it because it is a long-term investment for me.

As we did our financial planning she needed comfort.