@Jonathan White Seems to me that unless the defective septic was disclosed in the listing (as you said, it wasn't), you had every reason to think that the property was being delivered with a properly functioning system.  

I hadn't thought about having multiple heirs "dilute the pot" and create a potential headache in the future - I'll certainly have to think about it.I think cash flow is the primary function of this property, but then again, I don't know much about commercial real estate.

@Christopher Cadenhead You should use the search function on the forums.

The current water heater is well over 10 yr old and while still mostly functional it will need to be replaced soon.

You are right, the veil of asset protection could be easily pierced, but that is more a function of how your LLC is set up.

The important thing is that it's a legit ADU (which includes a fully functional kitchen), not a work shed or anything else.

Using the search function on this site, try to locate some members who live next to you, let's say within 50 miles.2.

Is it best to claim as little as possible or as much as possible in terms of depreciation (a function of the cost basis less land / 27.5 years)? 

My advice is to definitely utilize the forum search function, its been working wonders for me so far.

not sure if that function exists but someone at google would know. p.s. if you send that idea to google, you and can split the royality.