Check the local zoning regulations first and make sure you have a legal place to put the tiny house.  

Nashville is out of the question permits and regulations get harder every day and purchase price is through the roof.

If you own a restaurant, call your Congressman and advocate for it's reinstatement.The Tangible Property Regulations (TPR): Fortunately, TPR still applies.

First off, I always want to provide a clean safe environment for my tenants, but, as you are experiencing, for some reason all tenants are experts in mold detection, the strength of tree limbs, and apparently basement flooding. 

@Donavon E Frost, I would consider the following, in order:Local Regulations: will your state/city/HOA allow?

As soon as you break the surface tho legally you will need to comply with the EPA and RRP roles and regulation with lead paint.

Glad I sold mine after they started requiring licensing and a percentage of your income....https://www.cityoftacoma.org/in_the_news/in_the_news_archive/tacoma_city_council_approves_new_rental_housing_co

I've been reading about the tangible property regulations and using GAA election to keep depreciating the demolished building but I'm not sure if the scenario mentioned best suits this strategy.

The 3 things I always tell new STR owners that would still apply here are: Make sure it pens out as a long-term rental as well in case regulations or market shiftsKeep 6-12 months reserves on-hand for black swan events (we are in one now obviously)Don't overleverage yourself (that really goes for any investment). 

Ryan,A few things:1) check out the regulations in your local area for setting up RAL (btw, they may be called something else as RAL is not official title and they tend to have different names in different states.)2) consider reaching out and posting it with the agencies that sell businesses such as bizbuysell and advertise it there. this step assumes you've completed step #1 and know what this facility is called and it is actually allowed to have in your type of house.Originally posted by @Ryan Miller:Let me know how this turns out.