So I recognize the backhand is my own demise. 

Until you know your market well enough you will have no chance of landing good deals because you won't be able to recognize one.

The loan specifically recognizes that you are using part of the property (property must be 4 or fewer units) as your primary residence. 

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

My issue is AZ is a non-conforming (does not recognize the bonus).

It is true that on a state tax level, CA doesn't recognize 100% bonus depreciation along with a few other states); however, on a federal level you can still apply bonus depreciation to your income.  

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.5.

It's easy to overextend oneself in this business.

-Owner will make this a rental-Owner does not have funds to build-Owner recognizes that investor is bringing considerable additional value to property-Investor (me) has funds to build -I may or may not do a percentage of the work/build-I want to set this deal up so that it is fair to all parties but I still need to make it worth my time.For sake of argument & simplicity let’s say:-this is allowed where he lives-size will be 550 square feet-everything will be done to code-to build will cost $50,000-after all official/legal approvals, start of build to completion would be 4 months-unit will rent from day one at $1,500/month-unit would be individually metered & renter would pay 100% utilities-the housing and rental market for the area is & has been strong with consistent growth, before & since the crashMy initial random thoughts:0.

Using Land Trust "Just another strategy for investors"Its uses are:To control or purchase real estateTo protect confidentialityTo limit liabilityTo help with "DOS" clauses in some casesLand trusts have been used since the late 1800's in one form or another and became recognized by statute or case law in many states.A land trust is a vehicle that holds real estate nothing more nothing less.The trustee has the power to convey or deal with the property at the direction of the trust beneficiary.