I think the confusion is between active business losses which can be deducted verses passive investment losses, which I believe must be carried forward, beyond a certain limit anyway.

CA Law allows for the construction of an ADU.

Currently own my primary residence and 2 investment properties are a beach condo (short term) and single family home (long term rental).The problem is I run a successful business and have no time to do the research in new markets, deal flow, upgrades, making sure cashflow, property management, etc.I am also not a real estate professional.

Look at it this way you are opening a new $400k to $2.5M business location and you are going to let it open for business without coming in to go over everything. 

CGL coverage will cover property damage, personal injury and  bodily injury but not many other issues that often arise, particularly during construction. 

Thanks, the purpose is to make it a place of business. 

I used all the money I made from a highschool business in ecommerce and selling basically everything I owned to rehab it. 

I've been busy with a newborn so I kind of got lazy with a Home Depot quote.

According to passive activity loss rules, every business is obligated to adhere to specific criteria, especially when it comes to short-term rentals.

We were told it was construction in the entire subdivision.