The operating LLC doesn't own any asset, just liquid cash that is rental income from tenant and expenses against rental properties.

I got a PA for 300k/FHA loan. 720+ credit score, 75k cash, and good income.

Quote from @Zachary Kessler: Hello all I’m currently hacking my house that has an ADU dwelling that generates income, I bought this property intending to leave and rent the house that I currently reside in (2 bed 1 bath) I currently have a very good interest rate locked in here from 2022 that I don’t want to lose or have my mortgage called due from leaving here, I live here for very cheap with the income from the ADU.

My 14 year old now makes over $100/month passive income from her % owned and my 10 year old is at like $65/month.In this process we are building their interest in real estate, teaching them the value of putting their money to work for them, and all the while growing our investment if we need it for their college money some day! 

Having the property on your tax returns will help to wipe the mortgage expense with proposed rental income, making it easier to qualify for your next primary residence purchase.

@Devakumar Sai Chinthala There are income limitations for passive losses, you should check with your tax professional.What will the property taxes increase to after you buy the property?

Some reasons you'd need to sub your tax returns: if you have a schedule C (self employemnt) or a schedule E (rental income). 

What is the best way to set up the inheritance to minimize income taxes?

My PERMANENT PORTFOLIO consists of notes and my participation in note syndications that are held for income, collect interest on a continuing basis, and (hopefully) get paid off at maturity without any “drama”.  

It's seen quite a bit of growth and development, the income is also high around that area.