I consider myself pretty savvy at HUD homes as I have helped numerous clients purchase them (And a few myself fully disclosed).

Trying to get info from the health department is time consuming but she's getting there. 

Then be creative for their current use, wedding venue, events, horse boarding, mental health retreats for the rich, drug rehab for the rich. 

You are obligated under certain circumstances to have the local Board of Health inspect and verify that the apartment meets State Sanitary Code and safety standards prior to renting it.

A wet basement is not only smelly but can lead to bigger problems like structural damage, and toxic mold that is hazardous to your health.

LLC are for asset protection — there a numerous discussion threads on this topic in BP and BP has its own blog articles on it.

There are still great deals out there where you can make great returns with numerous strategies: flip; B.R.R.R.R.; buy and hold; buy and sell turnkey; etc. 

That way one account can process payments from numerous rentals .thoughts?

I've worked on numerous homes in Coronado, La Jolla, Rancho Santa Fe, and it's very common for high end homes to have a guest house/pool house/casita/granny flat etc. etc. so an ADU is basically just a guest house w/ a full kitchen. 

After reading numerous books by other investors it seems like one of the common themes is finding a handyman/contractor that does good work, reliably shows up, and completes jobs on time and on budget.