What is the best strategy that is legal here?

Hello @Dana Gaglion,This is not legal advice... plenty of great attorneys in NY will offer a free consultation so I'd recommend going that route.

@John ClarkAn LLC does not necessarily need to be actively conducting business in its registered state for liability protection to apply, but it must be properly maintained, compliant with state laws, and treated as a separate legal entity.

If you can add a legal ADU at $25k in the Austin area then you should add it.  

Specifically, the sponsor, Nelson Brothers Professional Real Estate (NBPRE), and later Nelson Partners Student Housing, NB Private Capital (NBPC), Versity, Versity Invest, Versity Investments, and Crew Enterprises (constant rebranding/renaming to hide past issues) had yellow/red flags about them before I invested in 2017.

Disclaimer: I am a licensed real estate broker associate in Florida, but this is not legal or financial advice.

Some areas have a steady need for traveling professionals, military families, or seasonal workers, which can give you different ways to structure your house hack beyond just a traditional long-term tenant.Your VA loan is a huge advantage because it allows you to buy up to four units with zero down.

Then talk to a qualified, professional QI like @Dave Foster.

There is an added risk layer if your basement unit is not legal and you know about it.

You've got to stand out and a professionally designed space is an easy way to do it.