If the ADU doesn’t meet IRS guidelines, you could face capital gains tax liability.

Focus on Education and NetworkingBuild your knowledge: Continue learning about different real estate investing strategies and market trends to make informed decisions.Connect with other investors: Network with experienced investors in your area to gain insights and potentially find partnership opportunities.    

It’s great to hear from experienced investors like yourself, and I look forward to gaining more knowledge and making informed investment decisions.Thanks again for your support and encouragement!

Did you inherit this home with a step up in tax basis or will you need to pay taxes on any gains if you sell?

When you're ready to rent, consider refinancing to eliminate PMI and potentially lower your rate once you've gained at least 20% equity.

To maximize my cashflow and gain landlording experience, I’d do STR and MTR in the other units, as well as the other bedrooms in my unit.

They will get you the plaster price and take a portion of what they gained you.

Reno Scenerio Off Market Purchase Price - $185k ARV = $315-335kReno - $55-65kHolding - $10kClosing both ends - $25k= $335 , $315-$285 =$30-50k gain  As-IS Scenario Purchase - $185kSale Price on MLS :$225- $235kClosing both ends - $20kHolding - $4k= $235 - $209 =$16-$26k gainIn both scenerios I’ll be 1031ing it into a new investment.

This one is a big improvement because we'll gain a lot of space, a more "house-like" layout, and a garage, and a third bedroom!

@Lexi Blocksom If the burden of holding the property outweighs the long-term gains, a 1031 exchange allows you to defer all taxes, and you won’t have to recapture depreciation.This option enables you to use the deferred tax benefits to purchase nicer properties in areas with greater growth potential.Once you complete your exchange, you can immediately do a cash-out refinance if you need access to some cash, tax-free.