I tend to gravitate toward opportunities that allow me to "be my own boss," and don't restrict me to a set location or schedule.

Otherwise, the residential use regulations of the most restrictive adjacent residential district apply. 203.1"For CMX-1 it depends on what the adjacent properties are zoned. 

On the other hand, the Airbnb option at your primary home may give you more flexibility with less financial stretch.Key Tax Points to Consider:Depreciation:Duplex only → About $15k/year straight-line depreciation.ADU conversion → Extra $50–60k basis added, with potential for cost segregation and bonus depreciation (front-load tax savings).Airbnb conversion → Similar depreciation benefits, possibly even more advantageous if treated as a short-term rental.Interest Deductions:HELOC interest is deductible as long as the funds are traced to the rental/rehab.If used for personal expenses or non-rental projects, it’s not deductible.Classification:Duplex/ADU → Generally Schedule E (passive activity limits apply unless you qualify as a Real Estate Professional).Airbnb → Could fall under Schedule E if you DO NOT provide significant services (no passive loss restrictions, but may trigger self-employment tax).Risk vs.

MA has already relaxed ADU restrictions and is soon to queue up major overhauls regarding new build permitting per the governor.

It's very rare to encounter your situation, typically HOAs are too restrictive.

A lot of them have restrictions where you have to rent it for a minimum of one month.

In some areas, each RV pad must be permitted separately, or you may run into restrictions on how long guests can stay.

One is legal around here some local governments don't allow ADU at all, some have restrictions like the ADU can only be rented to a relative like a "mother in law suite", one local rule is that it must be attached to the primary dwelling, and some areas have few if any restrictions.  

For this purpose, a loss shall be treated as sustained during the taxable year in which the loss occurs as evidenced by closed and completed transactions and as fixed by identifiable events occurring in such taxable year.Lastly...From Form 1065 (partnership) Instructions - for posterity Failure To Furnish Information TimelyFor each failure to furnish Schedule K-1 (and K-3, if applicable) to a partner when due and each failure to include on Schedule K-1 (and K-3, if applicable) all the information required to be shown (or the inclusion of incorrect information), a $330 penalty may be imposed for each Schedule K-1 (and K-3, if applicable) for which a failure occurs.

For example, if you’re in California but want to invest in Tennessee, then look for local or regional lenders within TN.Happy to share some recommendations if you’re in the market for financing.I definitely think local banks are the best although DSCR lenders are worth looking into as well these days, especially these days when debt service coverage is more often a restriction on loan amount than the appraisal is.