While they have historically been underappreciated and de-valued, this too is changing, particularly as new loan products are being released specifically for the purpose of funding ADU construction.

Quote from @Dario De Pasquale: Hello there,I am an experienced investor in STR.

Buy passive Delaware statutory trusts and TIC syndications that can all be totally passive.  

You'll only know how hard or easy it is to remove once you try.A good wallpaper brand is Yorkpapel de parede york brand por example 

To use a 1031 to pool money you need to either, A) Find a syndicator willing to use a 'tenants in common' structure, or participate in whats known as a Delaware Statutory Trust (DST).

Quote from @Dario De Pasquale: Hi everyone,I am a small STR investor and in the past few years I have been investing in both stocks and real estatewith COC returns of about 20% for the past 3 years.I am considering diversifying my portfolio with LTR and I know that returns there are going to be a lot smaller.So I was curious to know if there was a rough formula that could include mortgage paydown, tax advantages, and estimated appreciationto be able to compare apples with apples.I am only familiar with Cashflow, CoC, Cap Ex, and IRR.Personally I look beyond those items when I invest in real estate.

Investment in this area tends to be block-by-block so as @Paul De Luca mentioned, it's worth driving through and assessing prior to making any investment decisions.

I'm not a lawyer but I'm familiar with large-scale real estate investors purchasing properties in the state of New York using a Delaware LLC.

My soon to be buiseness partner and I are looking to form a series LLC in Delaware.

Texas, Wyoming, Delaware only allow piercing the veil under fraud.