You didn't say if this was 2-4 units or 5+ units.  

This will save you tons of wasted time!

ChatGPT suggests it can be considered 3rd party ownership  Talk to an attorney regarding this.

But this isn’t one of them. 

So this would force you to shift to a MTR strategy. 

How does this deal analysis method sound to others?

I actually just ran into this exact scenerio with my buyer.

Personally, I’ve seen some solid returns leveraging bonus depreciation, but I’ve also seen people get wrecked not understanding what “active participation” really means.Would love to hear how you’re all approaching this.

But when you do this you are treating that property as an investment.This is not an uncommon scenario - whether it's a company needing to leverage space. 

I think single family builds like this are pretty easy.