Until then, Id really like to set up some passive income in the city based upon buying and holding units for rent. 

When dealing with two separate houses on the same lot being sold together, it is important to consider several factors in determining how to calculate potential rental income.

This may be easy enough for most states and their relatively simple tax regimes, but states like California, New York, Texas, Pennsylvania, and a few others have some quirks to them.For example, California makes disregarded single-member LLCs file a tax return, pay an LLC tax four months into the tax year, and potentially pay an LLC fee six months into the tax year based on estimated gross receipts.  

Typical rates are 8-12% of income either monthly or yearly depending on manager.

If you are selling your business, what are you two doing for income now (goes toward financing ability)? 

Are you able to take advantage of the ADU as an expense against other income (W2 other gains) where you could get back most of it? 

@Erika Caba I think if at the end of the year when you can evaluate the situation as a whole with everything taken into consideration and are looking at your tax returns if your goals have been accomplished with this building, whether it’s positive cash flow, off setting W-2 income, whatever, then I’d say it’s too early to throw in the towel.

My goal for this year is to get as much "priceless" information from this platform, concerning all things investing, and later use it and PRO to start and maintain passive income from real estate investing. 

You will run out of money for down payments quickly buying rent ready rentals & the STR income can fluctuate greatly depending on the season / state of the economy.

It's usually more tailored for rental properties, covering things like loss of rental income and liability.