The electric is separated and provides hot water.

So I’m thinking of either separating a master suite, putting a long term tenant into the “majority” of the house and renting master suite as STR, or, putting long term tenant into ADU, and renting out primary property as STR.

I've house hacked twice on two separate properties and both times, I bought on the basis that I could afford the entire property on my own income with no worries. 

Property was a perfect match to accommodate 2 units as it had 2 separate entrances, 2 driveways and 2 AC unitsIn an up & coming LA neighborhood How did you find this deal and how did you negotiate it?

My lender said there would be no extra cost to us but this all just sounds to good to be true.We like the flexibility of having 3 loans (we could sell them as a package or separately over time), but I am wondering if that's the smartest move here. 

Basement is finished with a kitchenette, bathroom, small living area, small bedroom and a separate entrance.

Regarding a separate detached ADU in Denver, they aren't as common as you see in Los Angeles.

It is a 2 separate buildings in a lot.  

COMMISSIONER: Frequent and substantial sales of real property more likely indicate sales in the ordinary course of business, whereas infrequent sales for significant profits are more indicative of real property held as an investmentTips to get capital gain treatment on the sale: A) If you have an actual investment property and you are a dealer: Maintain separate bookDocument intent to hold the property as investment property in Minutes or other documentsReport expense as investment expense on tax returnAlso use separate entities.B) Insubstantial Nature of the Real Estate ActivityThe frequent buying and selling of real estate indicate the taxpayer is engaged in the trade or business of real estate sales.

We noticed a common theme in out practice today of for charge services and add-ons, a separation of the components of leasing a property to empower additional revenue streams to off-set rent restriction areas.