Stuart I think what most are missing here is these investor are/want to be passive they dont want to have to hunt for a loan or try to run a rehab project ( remotely as most probably dont live in the market these props are at).

It's not always enforced but that would be my recommendation, otherwise you have to put an alarm that chimes when it's opened to keep track of kids running outside to the pool!

Has anyone else run into this recently?

Congrats - have you completed the deal yet (4 leases in place, STRS up and running)? 

Have you looked into property management options or run numbers factoring in potential vacancies and maintenance?

For example, maybe you will get to 10, 20, 30 houses and then find an owner who has a large portfolio and all of a sudden you are at a high door count and now need to hire, need to build your policy binder, and all the other stuff that comes with running a business.

Timing your next investment is all about balancing risk and financial comfort—trust your instincts and run the numbers carefully.

For larger properties, some of our clients run another cost segregation study at the time of sale.2) Partial Dispositions - Taxpayers can carve out and dispose of components removed or demolished from a building.

Focus on running a clean operation rather than perfect technical compliance.Pro Tip: Your biggest risk isn't the IRS - it's partners who might complain to the IRS.

In my analysis the cost for an ADU in kern county would run about $85K and I have saved about 75% of that right now.