@Robert Brown personally I'd avoid Sosua, as it's a destination for sex tourism.There is also Santo Domingo, which attracts business travellers as well and the nearby beach city of Juan Dolio.

That's ~12% Cash on Cash return which seems pretty good/decent.My concerns are by doing this, it would reduce my rent price on the main house (most likely since they'd be sharing with other tenants on the property) and also I'm unclear whether adding an ADU would negatively affect the value of the property.Option 2Consider converting the property into a short/medium-term rental, specifically to travel nurses.

We acclimated the flooring, but I suspect the existing tenant may keep the house at some very different temps (when she travels I suspect it's quite cool in the winter just warm enough to keep pipes form freezing, and very hot in the summer).  

Here in NW Florida, there's tons of options to house hack really nice homes if you rent by the bedroom or separate in law spaces through MTR to military or traveling nurses. 

They cater more to traveling professionals. 

I put in some new flooring and paint, minor electrical, and a couple of ceiling fans (approx 20k in repairs, appliances, travel, and holding)I put in a new refrigerator, washer and dryer, and leased it myself to a family a few months later (6 months lease) through an insurance company because of their home being a total loss.

My audience I was shooting for traveling nurses & displaced families

The property cash flowed well and covered our expenses in 2021 and 2022 with short-term rentals and about 80-85% business use, but it did not rent as well in 2023 (oversaturated rental market, change in travel restrictions, weather etc...) and dropped to about 65% business use and a negative cash flow of about $15K.

It sounds like he believes CAP rates have a significant chance of going higher still given most likely conditions.Hospitality can be highly risky as some asset types can be heavily affected by a recession and corporate travel restrictions. 

With only 100k to deploy the Midwest will offer cash purchases and more monthly cash flow and usually less dollar appreciation, long distance travel, and extra time to manage.