Building an ADUBuilding an ADU at your family member’s place is a smart move.

Living in it for a year and then renting it out could be a smart move to build equity and gain rental experience without the major rehab headaches.

Such a smart use of time.

But I heard a podcast from Tax Smart Real Estate Investors (link below) on house hacking which notes that if part of the residence is used exclusively for STR, section 280A loss limitations shouldn’t apply.

Waiting for rate drops is not my idea of playing the game in a smart manner. 

The newer property should keep things low-maintenance, which is smart for your first investment.

A solid W2 income can be a big advantage when it comes to securing investment property loans, so it's smart that you're recognizing that.

With your saved capital and no major obligations like high rent, you’re in a good position to make a smart move.

In my personal opinion, I wouldn’t be as worried with some of the niche items, like a surround sound system, smart features, sauna.

You can save money by buying smart, but don't buy cheap/lower quality because you get what you pay for and it may cost you down the road.