I knew that one bad tenant and/or one extended expensive turnover could ruin that meager cashflow for a year or even two.I think situations like that are better suited for investors with extremely well-paying w2 jobs and/or other forms of income. 

I live in the bedroom downstairs, rent out the 3 bedrooms upstairs, and plan on converting the den to a suite-like room to airBnB when I get some free time - mostly just needs some paint and furniture.

Tennis courts, spa, gym, 2 swimming pools, 2 bars, 3 restaurants and a children's village all invite you to relax.

Unless you find that elusive deal or have a lot of luck, you will be swimming upstream when targeting specific metrics in isolation. 

We were taking advantage of their >500 square foot house additional allowance by adding a master suite to the main unit.

Now I have a option to connvert it to ADU or master suite.

That could be a great way to find and stay engaged with local investors, realtors and opportunities. http://www.biggerpockets.com/alertsYou can also search for other investors or brokers in those target markets and follow their journey on Bigger Pockets here: https://www.biggerpockets.com/search/usersAnything you can do to build your network in the region will help you find the realtor, and eventually the property, that suits your needs.

Greetings,I am very new to the REI world and trying to learn as much as I can so I can dive into the pool and swim.  

I think the best course of action for you is the one that plays out to best suite your time, and business plan.

ARV is $900K on this house (Summit NJ, train access NYC) and reno timeline is 3.5-4 months (we're dormering an unfinished 2nd floor to add master suite + 2BR + BA, gutting first floor, finishing basement).