There is no one size fits all answer for this question, market to market, and property to property are all different. 

It's not RTR's fault the property can't absorb proper cap ex, that's a product of the market.

Unless you are sourcing properties yourself off-market, REI became much more challenging in 2023, and downright brutal since the start of 2024 here.   

Is this the only market you are looking at to invest in or are you open to out of state investing as well?

its a booming market! 

Quote from @Devin James: We’ve slowly been improving our homes the more we’ve built and the more feedback we get from our Buyers2021 – Added 8ft doors throughout the home2022 – Added a new elevation with stone in the front of the home2023 – NO carpet in the bedrooms, LVP throughout the home2024 – Added hurricane impact windows & new color options2025 – Adding Ceiling FansGotta be open to feedback and adjust accordinglyThis can be the difference of your home sitting on the market for 4 months vs 1 month where's the modifications and pictures?

The big issue is building a single small residential unit is the most expensive residential development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

So they used the actual rented data of these companies to compare what rentals should go for in your market.

Great point about different states and markets having different laws about using evictions as a reason for denial! 

My first duplex was a turnkey, off market property.