Quote from @Dan Zambrano: Hey all,After thinking it over I decided to create a new thread.I am a small time passive real estate investor who has ambitions to expand greatly, first to $20M and perhaps maybe more. i guess I will give a little bit of background on my journey up to now.I am 38 y/o, Electrical Engineer by day, Architectural enthusiast by night.

Hey Bigger Pockets Community,As real estate investors, we focus on building wealth, creating passive income, and securing financial freedom.

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

Critically, he's filling a gap: turn-key, entry-level homes are scarce in Chicago, creating a strong demand for his rehabbed properties.

Chances are very high that you are not claiming tax losses that you should be.There are many ways to create relationship problems and one highly successful one is mixing business with pleasure. 

It’s all about finding the right lender with the experience in these types of unique deals.I sent you a message!

This is because DSCR loans do not follow/ pass consumer protection laws. when you live in the property, it creates massive problems for this loan type and the lender which would issue it to you. 

Consulting a tax advisor is recommended to optimize salary and compliance.This post does not create a CPA-Client relationship.

To reduce taxable income, focus on maximizing deductions for expenses like materials, labor, and interest.This post does not create a CPA-Client relationship.

In the event that he moves out in a few years, I would turn the unit into a rental.Questions:1) Since I will be renting to a family member, do I still need to create an LLC?