The reality that neither view is realistic or probable.The best advice I can give would be to underwrite for long-term leases as that can be an acceptable exit strategy, but be prepared to execute well on your MTR strategy (great interior design along with profesisonal photos and concierge servive). 

When I'm preparing these letters/documents, I'm really learning as I go.

You should be consulting with your CPA ot tax preparer to account for the specifics of your individual tax situation. 

Even if it's the biggest unit, you need to move into that one to satisfy the mortgage if it's liveable and then figure out how to get the tenants out.Who was your agent on this because they have not prepared you for anything? 

They did also send me a 1099 at end of year, so be prepared to pay taxes on that money if they do it like that.  

Be prepared with solid financial projections to present to lenders.9.

Key is talk with your tax preparer.  

This streamlined process can save time and reduce the likelihood of errors.QuickBooks is designed to simplify tax preparation and filing, allowing you to focus on running your business.

However, you may be able to capitalize some of these costs, particularly if they relate to improvements or preparation of the property for rental.Expenses (after December 1, 2023):Any expenses incurred starting from when the property was available for rent (December 1, 2023) can be deducted.

ADUs can provide additional rental income, which can help offset mortgage payments or other expenses.Extend your homeowner's insurance to cover the ADU.Be prepared for potential increases in property taxes due to the added living space.Given that your property is not in a dense urban area, make sure to check specific local regulations as they may differ from city regulations.