Then with fencing we were able to give the ADU its own backyard and front patio and we barely see them.To achieve the window placement, we did a front door with a window built in (also had built in shade) and two set of French doors for the back.

The main floor walks out to 875 sqft paver patio with privacy landscaping.

The first is information about the property (i.e. number of bedrooms and baths, square footage, central heat & air, etc) and all the selling points (i.e. large backyard with covered patio, close to schools, parks, shopping, all stainless steel appliances, etc). 

Your salary or wage is ordinary income. 

Hello fellow Big Pocketers - I have a feeling that I am just out of luck here but thought I would reach out to the smartest group of people I know when it comes to real estate.Situation - -High earner in my W-2 job (n...

FYI...most kits that are built onsite will usually still need someone (a local contractor) to build a foundation, run utilities (water, sewer, electricity, gas) to the ADU, and build out any other necessary site-work: landscaping, patio/driveway, fencing, etc.

The backyard was a dirt pile, added a new large patio and landscaping, all new grass.

If you rent it out, you get tax benefits over carrying the note (ordinary income on interest) and in 3 years could refinance.

In an article I read, it said that as a real estate professional, all my income would be considered "ordinary income" and would be subject to self-employment tax. 

We were satisfied with what we saw - nothing out of the ordinary.