I recommend finding an accountant who specializes in real estate taxation and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

Nobody knows all the answers, even within our niche of real estate taxation.

I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning. 

An experienced accountant who specializes in real estate taxation may charge more than an inexperienced/new accountant who is eager to get clients. 

I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

Additionally, this structure eliminates the need for active management, as the real estate assets within the DST are managed by the sponsoring entity.As an investor your level of activity would include collecting monthly distributions, receiving  quarterly reports on investment, file taxes annually and 1031 exchange your investment every 7-10 years (sometimes shorter depending on the market).

To get into compliance, if it is even possible, you will need to speak to the city planning department to see if the property is eligible for rezoning, a special use permit, a guest quarters, or an ADU.

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

I think people are getting more creative thinking about separate living quarters (basements, split levels, etc.). 

Fees are charged quarterly based on asset value and the IRA pays the fees.