I bought a ton of them about 10 or so years ago.

Negligible changes called "diminimus" are the easiest, but they are along the lines of 1 foot out of a 50 foot setback.

Hi Saul,Vegas and Phoenix are on the pricier side, so you'll need to put a large down-payment down if you want to cover all your expenses with some cash leftover. 

Have only lightly looked into it as we have been so heavily focused here, but also because we haven’t had a connection.

My interest rate and purchase price wouldn’t allow for positive cash flow unless I charged an unreasonable rent—or put about $500K toward the principal, which isn't ideal.I’m a high earner, so I’m weighing my options:Take the loss ($60K-$100K), buy another house, and chalk this up to a hard lesson learned.Refinance, put more money into it, and rent it out long-term—even if it’s not immediately profitable.Invest my money elsewhere and try to make peace with staying here for several years or just move.Would love to hear thoughts from anyone with experience in real estate, financial strategy, or noise mitigation.

I've been thinking about ADUs as well, so I will keep that as an option.

There are no taxes on the sale of real estate in an IRA so there’s no application for a 1031.

If so, I’d recommend investing in your own backyard as opposed to going out of state.

If you're talking about building an interior wall to create a bedroom, this could work so long as you aren't significantly reducing living space compared to the competitive rentals. 3 bedrooms with a tiny living area could cause problems.

So the deal ends up falling out or they take forever to find solutions.