I see potential in this and was raised in homes like these making it in my wheel house. 

Any potential future buyer will have the same problem getting financing as you did.

For my senior project, I am researching the ideal marketing strategy for a hypothetical (but could become real) multi-unit Tiny Home STR property in Malibu, CA (with the potential to generate huge cash flow and long-term equity ;)To graduate, I need a guest from a real estate company to sit in on my final presentation (10 minutes) and to provide brief feedback (3-5 minutes) on Tuesday, April 23rd at 3:00 PM PST on Zoom (15 minutes total).

I appreciate that it is hard to get started in life and you are very young, but that does not excuse creating a false impression online to induce potential investors to "connect" with you.

Obviously we need to do some groundwork with the City planning department and potentially zoning.We are approached constantly by developers seeking to purchase the property for them to develop (everything from we want to build homes to help the environment to building condos for our 98 year old grandmother to live in). 

I’m not sure of the legitimacy or legality of all of this, but it has me looking more closely at this type of business to see if that may be how I need to word my LLC’s services provided for my properties and then potentially grow to provide similar services for others’ properties.

Understanding taxes is a weak point of mine that I'm trying to fix.  

I think this is a creative idea with a lot of potential, though also with some unique issues as mentioned above. 

It's designed to prevent taxpayers from deducting passive losses against non-passive income, which often leads to situations like you've described.Your concern about potential double taxation on the $2,000 net income is valid.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).