By accepting pets, it not only has it increased my cash flow per stay, but it has opened up my place for more bookings. 

The goal is to cash flow so I will rehab the property and increase the rent.

Combine that with rates that are near high for this century.  3 things could solve this 1) RE prices fall (that would be bad for me) 2) rents increase a lot without RE prices increasing similarly (this would be bad for tenants) 3) rates fall a lot.  

If you can find properties where you can add value (adding units, increasing rents) then you can increase the value of the property, refi and get your money out. 

If your rental income increases faster than inflation, you will have the additional dollars you need to pay inflated prices.

If it's in your name you can look into the potential for a HELOC or potentially refinance to pull out some of the equity you've created, but you'll need to do the math to see if you're payments will increase based on the new loan terms.

I'm a fan of gated yards and higher-end security doors and will install chain link and even some wood privacy fencing if I think the house/area warrants it.  

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

But Metro Phoenix is a leader in rent increases.

I've already renovated one of the bathrooms, and I’m planning to paint the interior, update the kitchen cabinets, possibly sand the wood floors, build a fence is a corner lot and increase the rent for the room since my tenant is currently renting the entire 3-bedroom, 2-bathroom house for $800 a month.