The concern from the secondary capital markets lies in the following: Residential assets are appraised as, and commonly zoned as, their highest and best use.

Another example of this is the reduction in new construction starts for residential over the past 1-2 years.

AB1482 states that "single-family homes/condos (residential real property that is alienable separate from the title to any other dwelling unit) are exempt from AB 1482 if (1) the owner is not a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation and (2) the owner provides the tenant with a written notice of the exemption"The part that is confusing is "...a corporation, or a limited liability company in which at least one member is a corporation."

Hey Liz,As a loan officer who has completed more than 2,200 loans in Minnesota, I can assure you that attorneys are completely unnecessary, and expensive in Residential Real Estate in MN. 

Now most times a resident is under market and this isn't an issue, but I'm just illustrating a point.

It's a piece of residential real estate, that is not how you value this type of asset. 

I guess, just like in residential, sometimes its easier and less expensive to just bulldoze and start new then trying to do an addition. 

If greater than 30 days' average, it could be considered residential. 3) Passive, Nonpassive or somewhere in between?

One LLC holds a self-storage facility, one has my property management business, one has residential rentals, and one has commercial rentals.

Feel free to ask if anything else comes up along the way always happy to help a fellow investor-to-be get going in this crazy, rewarding industry.Take care, Pat & JasperTurning investment visions into REALITY in Phoenix, AZ - Ranked #1 for residential real estate growth and opportunity by PwC