They still own the house though.

I have my dad’s house (he passed 2 years ago) and am wanting to rehab it & rent it.  

With value-add, I know I'm getting at least some of my capital out when I'm done and I'll end up with a house that should not need any significant cap-ex for quite a while.I'd do turnkey too if the numbers looked good enough but the reality is in the market where I have boots on the ground you're talking about close to 60k between down payment and closing costs for maybe $200/month in cash flow.

If you’re comfortable with a bigger investment, a duplex is good for the benefit of additional cash flow and you could house-hack.

Your time is worth money, it's time that guests aren't renting your house. 

Your criteria will depend on whatever you value most, population trends are a good indicator of what to look for.

Letting Go for Your Bottom Line: A Lesson for Real Estate InvestorsHey BiggerPockets Community,If you’re a real estate investor, whether you own rental properties, flip houses, or manage syndications, there’s a critical lesson that could boost your bottom line: Letting Go.Many of us get into real estate because we want control over our financial future.

Working with the city to find a solution.There is a similar situation near me where an investor bought a short term rental house, rehabbed it, ran it for a while, and then got in trouble with the town after a neighbor complained and the town said short term rentals weren't allowed in the community. 

Keep the current investment and buy another house hack to live in.

-----------------------------Today’s Interest Rate: 6.93%(👆.21, from this time last week, 30-yr mortgage)-----------------------------Today we’re talking: housing market, interest rates, and a quick update on my latest rehab and rent project.