You said yourself this can positively cash flow now, with the financing you were considering.

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

., commissions, fees) and consider a 1031 exchange to defer gains by reinvesting in another property.This post does not create a CPA-Client relationship.

Hey Jaedon - Have you considered exploring DSCR loans?

Another huge thing to consider is laws and regulations, many times new investors will jump at Hudson county thinking the proximity to NYC is great for renting (which it is) but many of the municipalities in Hudson county have very strict landlord laws. 

I've considered areas close to the Falls, but sellers seem to price it a lot higher assuming the buyer can make it up renting it short term. 

@Hamidou KeitaTo build a duplex or ADU in Tucson, verify zoning regulations, obtain construction estimates, budget for unexpected costs, research market rent and vacancy rates, calculate ROI, consider neighborhood and property value trends, analyze construction timeline, consider exit strategy, and consider a backup plan.

It's something the wife and I are considering, mainly because our house flooded during covid and after the Austin ice storm. 

So, what occupancy rate is considered “too high,” and when should I consider raising rates on my MTR?

If you’re not occupying the property and plan to either sell it or keep it as a rental, you might want to consider a bridge loan through a hard money lender.