Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

@Timur Salikov In NYC, $1,500 gets you a 400 sq ft apartment with a subway station under your feet and crackheads outside your window.

But in the meanwhile, I have come across a land in an up and coming CT market which is already approved for under 10 units.

If you didn’t think $6k was worth it you might find it’s under $5k.

Trying to decide if we should use a home equity loan for the remodel, do we need to put current home under LLC to help with debt to income ratio & would that affect getting the home equity loan?

My ADU is under 500 sq ft, so I didn't have to pay the extra sewer connection and school fees.

Since pro forma's are a projection they are as good as their assumptions, as an investor, you need to agree with the underlying assumptions. 

We don't have them recorded, just signed as another layer of protection. 

The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

I just got under contract on a hotel that I will convert to workforce housing.