The formula that is sticking out as a potential to me is what I have been doing quietly the last 6 years: buying a cosmetic SFH fixer in B areas with 3% down, live in and renovate, long term rent and repeat.

There’s huge retal income potential if you nail that balance between improvements that wow tenants and improvements that merely look fancy but don’t justify higher rents.I’d also keep an eye on how your high end plan fits the local demand.

If you can rent it for $2,000/month, after fees, taxes, and potential maintenance costs, you’d still make a decent passive income.

I will be living in the guest house, while renting out the main.Both units are without washer and dryer units, my question is, do I supply them in the main house; or let potential tenants figure that one out?

I have a pretty large emergency fund in place for those properties, but I wonder if that capital could be better employed elsewhere (potentially acquire another property).  

Your insights into the importance of a knowledgeable capital partner and the potential of these projects are valuable.

Of course, not everybody is that good at or has the time to do Google searches or know how easy it is to use ChatGPT so it might still make sense for you to provide such a guide to your (potential) clients.If you don't want to spend time reinventing the wheel, you have other easy options:a.

And my goal of trying it out would just to get familiar so I could potentially buy in a much better market. 

A second STR in a market with year-round cash flow potential might balance out your portfolio and give you more consistent income.

I was wrong to fall in love with the potential of this development.