Both options have pros and cons, and the right choice depends on your lifestyle, experience, and long-term goals.

-----------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Over the long term.  

It’s a city I know well because I built a 12-door portfolio there between 2019 and 2021.Detroit offers a lot of value in terms of affordability and rental demand.

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.

Leverage will be reduced from the max available, reserve requirements increased and, typically, you would be required to use a professional property manager.

Along those lines, if the owner gives you a very FIRM "NO" when you present your proposal to rent their home for the purposes of doing STR (short-term rental).   

I would look at the DSCR loan as the first option.By the way, I suspect you are going to be disappointed by any refi appraisals   ADUs typically appraise poorly   JADUs can lower the property value Vs having the space as part of the primary unit.  

Investment Info:

Single-family residence buy & hold investment in Oceanville.

Purchase price: $355,500

Cash invested: $75,000

Rental Property near community college

What made you interes...

Does anyone have any experience with furnished mid term rentals?