Hey there, I love your predicament because I am currently facing a similar situation, but I will offer my thought and what is motivating my decision. hopefully this could be helpful.we bought during the pandemic and locked in 2.25% rate. last thing I want to do is mess this rate. now with appreciation of almost $200,000 I am wondering what to do especially having created a new llc to focus on STR, flips,BRRRR and home maintenance. in taking this decision I believe you should consider location, which I think from your writeup suggest it's a strong area in terms of appreciation. next question is what market are you looking to invest in STR?

Seems like this makes sense in terms of risk mitigation, estimating values/deals, etc.How do you go about finding the data to make such a classification especially as a new investor?

To determine the possible return on your investment, look for homes that are comparable in terms of size, condition, and location.

In terms of potential numbers I think I could convert the garage to an ADU and rent it for $2k and could rent the house for $4k especially if I added a bedroom  And then if I did those things it would also be worth about $1m so I’d gain equity, but I love the place so much I’d probably keep it forever.

.   ** Christie makes a good and important point that just paying the tax up front will give you greater flexibility in terms of reinvestment options. 

Did it work out in terms of cost, payoff, and nuisance factor?

This is why the housing market, in terms of home prices, has remained so robust despite high interest rates.

I know the neighborhood well, especially in terms of pricing, and I had some ideas about modifying this house.

I know the neighborhood well, especially in terms of pricing, and I had some ideas about modifying this house.

However, I don't think there is any downsides to getting the license, and it would increase your options in terms of career paths and investment opportunities.