The irony is most investors who form LLC's do not operate them correctly, fail to obtain appropriate types or amounts of insurance coverage, fail to understand their coverage exclusions, take short cuts and don't obtain permits, use unlicensed and uninsured vendors,  fail to execute contracts with same vendors, don't understand the mechanism of additional insured status, indemnification etc. and are actually more prone to claims and conflict with their LLC than the individual who does not own real estate in an LLC but understands these tools I mentioned.

What would the next steps look like in terms of finding partners, financing, and handling zoning or permits?

For those following along at home, that language is found in Title 10, Chapter 1, Article E, section 6 (or 10-1E-6) in the municipal code.It reads: "The renting or leasing of real property for residential occupation for periods of time less than thirty (30) days is prohibited in any zoning district within the town, except as permitted in this title for hotels, motels and bed and breakfast inns."

Like other cities Indy doesn't have progressive zoning and permitting laws.

If it were me I'd pass or do a substantial escrow holdback until you knew if things were properly permitted, etc.

Building permit lists are public records that document permits issued by local government authorities for construction, renovation, or demolition projects.

Other exclusions are roof replacement, anything requiring a permit, exterior painting if more than 5% of surface, "maintenance related to the garden, lawn, or landscaping," anything covered by any of the various required insurance policies, etc.

How much value would I add with a permitted ADU?

We would handle the structure and property design, planning, permits, bids, sub-division (if needed) for the project.

Obviously, there are permits and paperwork, etc.