>ADU's are generally a great return on investmentI could not disagree with this more in southern CA for hands off ADUs added in SF zoned areas.  

Hi Stuart thank you for your insight but I have to disagree with you.

I need it back in case i have to go to court and if the tenant decides to take me to court if they disagree with me on non returning the security deposit

(A lot of people are about to disagree...lol!!!)

I don’t disagree with @Scott Trench and others that there have been a lot of bad operators - especially recently. 

Just to 'let it out' I find him hateful and contemptuous of anyone who disagrees with him (small park owners, government officials, State regulators and of course any journalist who would dare attempt to report any news regarding MHP ownership. 

Christopher Phillips above had the right idea.If you disagree that's okay, it's between you and your tax professional.

@Scott Trench, I both agree and disagree.  

And that long term approach is how I see real estate benefiting the average person.To your point of not benefiting STR I slightly disagree, while this doesn't directly change STR rules I think it allows a potential for more STRs, again, if you're willing to make some sacrifices. 

I also more generally disagree with @Jason Wray's advice to cash out refinance, on two counts.