Does the time and effort behind designing, permitting, and building the ADU count towards the REP status?

Curb appeal is not a load of gravel, make some effort.

Take the effort to solicit contractor recommendations from multiple people.

No effort to give his investors even 50% of our capital back.

Owners cannot recoup these costs through higher rents, meaning they are effectively being penalized for trying to improve their properties.Instead of discouraging responsible property owners who follow the permitting process and invest in meaningful upgrades, we should be focusing our efforts on ensuring that all renovations are done legally and safely.

House hacking isn’t passive income; it requires time, effort, and a willingness to handle problems as they arise.### 4.

Essentially it comes down to how much time and effort you're willing to spend building the model.

Thats a fair point @Erik Estrada about not wasting a lender's time & effort - but how do I identify a good lending partnership if they don't disclose their numbers & estimates to me? 

If you don't have experience, then focus you efforts on finding a sponsor or partner with experience and consistent deal flow.  

I wanted to "sell" the rental house to a new LLC of mine in an effort to create an expense for the rental, and drastically reduce my tax owed.