It also adds complexity to management.

Expect a custom ADU to take 9–18 months, with 3–6 months for design and permitting and 6–12 months for construction, depending on complexity and contractor availability, and the speed of processing permits.

Which is very complex and costly and likely warrants professional help.Now, if it's just you and your spouse, then your 2024 tax preparation is likely relatively straightforward:- you will create a Schedule C on your personal tax return- you will NOT report any costs of purchasing the property or its rehab, not in 2024- you will report your business overhead expenses such as marketing, driving, technology etc- you will end up with a business schedule showing zero income and some expenses - not breaking the rules but potentially raising an audit flagCan you do it yourself?

Consider Hiring a Legal Expert- German property law can be complex.

Perhaps I have an odd case but I paid $1.35M or $455 / sq ft for a 3,000 sq ft duplex on a 7,000 sq ft lot in Los Feliz.Once I add the ADU complex, which will be around $350K, it will be a quadplex, 4,600 sq ft of living space. 

I am a little weary since I haven't done that before- not sure it would be enough to get me into buying portfolios or larger complexes though.. 

I read an article I thought articulated this very well, we are seeing the collapse of a very complex system and this the fruit.  

We understand that tax complexities can be challenging, but our experience shows that many of these barriers can be overcome with a strong local team.

we just managed to get ong to run all new lines and separate meters for our whole apartment complex at no cost to us. 

Quote from @Angus Brooks: Hey All-  I own a small apartment complex in a two entity LLC and am wondering what the tax implications are for a cash out refinance.