The state and federal government look at investment properties the way that they are correctly structured which is a business not just an asset.

Here's the Federal Reserve Chart so you can see exactly what I'm talking about (gray areas are "official" recessionary periods).It's really cool to read everyone's sentiment and thanks to everyone for sharing your opinion. 

I wouldn't worry about location.  1031 is a federal statute so it's practiced the same everywhere. 

I wouldn't worry about location. 1031 is a federal statute so it's practiced the same everywhere.

Stating out, you should focus on good maintenance and management practices to avoid getting into a lawsuit in the first place and purchasing the appropriate amount of liability and property insurance.Every LLC = 1 more Federal income tax return and at a minimum of 1 state income tax return.If I was starting over I would put each purchase into separate Illinois Land Trusts.

Considering that ADU income is taxable and both my wife and I currently have other full time jobs (cant claim a higher deduction in real estate work).

It is against FEDERAL law.

I know that’s what I want for our situation but I am wondering if there are specific categories of RE where most of the value is depreciable to offset other taxable income.

@Patti RobertsonAmen to not using Navy Federal!!!

The reason for requiring the LLC is usually driven by federal/state regulations/statutes.