And even then, that only defers the tax liability.With the craziness in the public markets, you could potentially tax loss harvest...At least be glad that you made money on it in 8mo. 

Yes, there will be limitations of a TN financial institution as I live in CA, and I have read articles about potential tax and filling season issues if you bank outside the state where the business is registered. 

LP is 280,000, ARV is 425,000ish and renovation is about 75 ~ 80 grands (+20 grands for closing cost, first year taxes, reserve etc).

State - it depends, you can have real estate transfer tax issues / re assessment issues. 

He passed in 2013 when it was finally sold for $1.1 million. 

Thanks, Tax.

I want to be prepared talking about tax strategies with my CPA and I have a few questions. 1.Can I take bonus depreciation on the ADU?

He's well into retirement, doesn't need the money, has previously paid the taxes to keep it out of a tax lien sale and just wants to be done with it. 

Would you prefer to join a "communty" to learn about real estate taxes and get half of what you need and pay half price or would you take a complicated tax return to a professional and get proper advice?

@Andrew Postell, I pulled it off the GRM site, which may not have updated ratios: "DSCR loans require borrowers to meet a minimum DSCR threshold, typically around 1.25...." https://www.rate.com/resources/what-are-non-qm-loansI spoke with a loan officer who said it may be lower now to reflect the market, so you may be right, but I am awaiting the approval and don't have the final ratio.