Asking in the correct forum will get a better response.Read the RULES!

The rules regarding ADU renting varies by jurisdiction. 

This deal doesn't meet the 2% or 50% rule of thumb, but it has positive cash flow and is in a growing market, according to the latest 2024 Top 100 data from BP. 

Instead, you need to meet the material participation rules.

In general, these are the rules.

If funding is the priority, using a HELOC while keeping the property in your name offers flexibility.This post does not create a CPA-Client relationship.

It will only create unnecessary hassle and cost.

You will need to continue filing a MO tax return even in loss years.Given the complexity of passive losses and state tax credits, consulting a CPA can help optimize deductions and ensure long-term tax efficiency.This post does not create a CPA-Client relationship.

Set your investment criteria, systems, and rules—and stick to them.2.Tenant management is all about structure.

Hey @Mike Nelson, never assume anything about STR rules and regs.Here is the STR rules for Oak Park - https://codelibrary.amlegal.com/codes/oakparkil/latest/oakpa...I would call the city and make sure it is legal for a specific property.Now regarding the famous person angle, sure it can add value to the property or as a STR, but for STR use, I would think you would need it to be in original condition with a lot of the furniture and knick-knacks that were owned by the famous person along with a bunch of photos etc featuring the famous person.If you buy a place that has been totally redone but was owned by someone famous but has no features or things that were theirs, then I don't see it being a draw.