Co-living will be necessary due to housing cost. 

. - Both parties share the risks, including market fluctuations, project delays, or unexpected costs. - It’s recommended to have clear agreements outlining each party’s responsibilities, profit-sharing ratios, and exit strategies. 4.

Take their ARVs and cost of rehab with a grain of salt.

We needed to build more there but the cost to build has doubled and the return is t sufficient.

So for the first property which will cost over $1 mil to construct, there will be stacked loans, essentially $280K will come from loan assistance program,( the name is not correct but the same idea).

The short version is that you want a strong and diverse job market, low unemployment rates, a growing population, low vacancy rates and new development, affordability/cost of living, real estate laws and court system, good schools, and low crime.Check out the videos from Dave Meyers with BiggerPockets.

As someone else mentioned, insurance here is generally less costly than in Florida and other beach markets. 

You could convert them to a DSCR loan but then transfer them to a LLCWhat we have done is save for down payments and renovation costs, - buy properties that need work rehab them and then refinance them out making sure it meets our dti.

$10K savings to you or higher cost to you? 

The reason not to upgrade, is that you won't get that much more income for the cost of the upgrades.