I'm curious though in this case if the local zoning authority has given zoning approval and will issue building Permits to renovate the garage into a separate apartment ? 

You're now asking about the "Mom & Pop" $25k passive activity loss allowance for RRE with 'active participation' under IRC Sec 469.We were initially talking about the new 20% QBI deduction authorized under IRC Sec 199A (new for 2018-2025 under the Tax Cuts & Jobs Act).You may want to engage a tax CPA/EA for 2018 just to make sure you're doing things correctly. 

Account Closed not a comprehensive list but these have been incredibly valuable in my investing career.https://rodkhleif.com/how-to-create-lifetime-cashf...https://www.amazon.com/Best-Ever-Apartment-Syndica...https://www.biggerpockets.com/store/raising-privat...Best of luck!

Code section 643(f) and the underlying regulations give the Treasury authority to treat multiple nongrantor trusts as a single trust if they have a the same primary grantor and beneficiary.

If it is licensed as a rental that will help you understand that plumbing, HVAC and electrical are at least functional and up to rental authority code.SFH don't really go off a CAP. 

Comparing that type of bid to a well written scope and comprehensive bid may not be an apples to apples comparison.  

Instead, the author ends the article with imagery of herself pregnant in a house in SoCal with no AC and no solar (and probably a leaky roof).

I know I need to verify sewer/utilities, easements, setbacks, soil feasibility, floodplain, density, zoning, etc. but I am not sure if that list is 100% comprehensive of what I should verify?

I did not ever authorize them to put a water bill in my name.

What those authors and gurus are really trying to say is that you should be gathering contacts, building out your rolodex, so that you have people to call when you do get a deal.