My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

The big advantage is having the capital gains spread out over many years to avoid a huge tax bill.

If your gut is throwing you off I would trust that.

and that was owner occ.. todays rates are pretty normal actually. what you can do if you want though is find a really good HML and let them place a loan for you making 10 to 12% while your wait for things to change to a situation that you feel you want to move forward be more net return than buying a rental thats for sure. of course no tax bene's but there really is not that much tax benefit on one rental.. so just some alternatives. 

Real estate has so many tax benefits and credits available, that I always tell people it's crucial to have a CPA that's extremely knowledgeable in this area.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

This should put in writing what the fees will be.What is your maximum LTC and LTV?

You cannot calculate rent by subtracting off the rent of the ADU.  

Rules vary significantly, and you need to be aware of licensing, taxes, and any restrictions.Local Market: Analyze the STR market in your target area.

.💡 Tax AdvantagesThis is where my tax brain gets excited!