Run the scenario both ways - see how your IRR is affected.If the end buyer is going to only cap lot rents and you find that changes your IRR from 15% to 9%, then you'd have to determine whether you'd be willing to take on that risk.Also keep in mind that all the 'metrics' are meant to help you predict future cashflows.

@Swati PatelThere is no such thing as taking partial depreciation.There are some items that you can do to accelerate/slow down depreciation but there is no such thing as partial depreciation.Accelerate depreciation = Bonus depreciation, section 179 expense, cost segregation analysisSlow down = Making an election to opt out of accelerated depreciation.Regarding whether or not you can utilize the rental losses to reduce your taxable income...It depends on what your adjusted gross income is.

You can also remind them that electing to wait until their lease is over places no guarantee on them receiving a full refund of their security deposit.

If you are seriously making decent money flipping, you would consider electing your LLC to be taxed as a S Corp which will help you save the SE taxes over the “reasonable” salary you’d have to pay yourself.

It looks like the ADU Ordinance is meant for people that want to build new ADU's and Individuals with existing, illegal conversions. 

Access to plumbing/electical a plus.PLEASE pull a permit! 

This is just "kicking the can down the road", a popular strategy of elected officials. 

I was particularly interested in accessing Conventional Financing for the both of us, having my cousin only applying for the loan meant only his income would be assessed for borrowing capacity and therefore the size of the loan we could potentially borrow would be limited.

If you elect to use an buyer's agent, they will help guide you through these nuances. 

(they provide their own)That said, we would if it meant retaining a tenant we liked vs trying to fill a vacancy.Are they actually concerned about the theft of the AC unit vs someone removing the unit and then breaking in?