There are special rules if you qualify as a real estate professional, your losses are not capped.

There are several professionals here on BP who can help you with the IRA LLC structure, including myself and Brian, do your due diligence.

The professional tenants share this kind of info in some circles, and all they have to do is call with the suspicion that their usage is less than their bill, and they utility will send a tech to inspect all circuits. 

although they both are interdependent.The best way to understand costs is to get a Floor plan drawn and get quotes from at least 3 people in the area who have done ADU'sIt's always a good idea to involves a professional right from the start, especially someone who is experienced as they will suggest techniques that could bring value and save money in the long run.

If so, I would see if it was legal to cancel the lease.I suspect that you are inheriting a professional tenant. 

What next is your son going to invite random street hookers to live with him or maybe the local crack dealer ?

Seeing lots of tourism-centric cities crack down on short term rentals and fining landlords obscene amounts. 

I would locate interested sellers who have >40% equity in their SFH and do not have a contract with a RE professional to sell their house.

I believe it to be a good investment, but wanted to know what the professionals thought of it.

By day I work in commercial real estate lending in NYC, and I'm also a professional engineer, so I'm happy to help the community in anyway I can.