Since it’s a 3unit and with full open basement with separate entrance bathroom and kitchen is there a way for me to occupy the basement and rent all 3unit.

If I'm understanding the exchange rules, we would need to purchase that lot separately for at least $523K to maximize the tax benefits and would we need to finance around $200K. 

A separate trust account is used to keep tenant security deposits in the clear.With regard to multiple property owners, your accounting software should be set up so that you identify each individual property, and, along with your chart of accounts for items such as property tax, management fee, insurance, plumbing repairs, rent, late fees, etc. etc. you make entries to the proper accounts.

They tore down the garage and built a separate 2 story building, at 800 sq ft (the max allowed for an ADU).

@Jennifer Maiolo I am going to run into this issue as well and researching options to meter separate circuits for energy use and either bill it back or contain a certain not to exceed amount in the lease.

So if you bought all quads... you could have 40 units with just 10 loans (80 if you are married and each person can qualify separately). 

Even better if they had separate entrances, parking and addresses. 

@Seamus Garvey an LLC is often a great structure but understand by creating a multiple member LLC you will be required to file a separate tax return for the entity. 

I've been able to significantly increase rents as units have turned over, and also added a RUBS to help cover the water / sewer / gas costs (electric is separately metered). 

Coming to meetings he didn’t need to and didn’t even know he was going too, meeting with us regularly at the rental property to go over construction needs, staying extremely on budget and the willingness to work with us on three separate projects is great.