If you can maximize all 3, then you've also created a very wide lead funnel, which is less common in multifamily properties.Maximizing "pets" means you're removing carpet, allowing at least 2 pets including cats and larger dogs > 50 lbs, access to a fully fenced-in yard or walking distance to a dog park, leniency on breed restrictions (depends on insurance, your risk tolerance, due diligence with pets during inquiry phase), pet friendly furniture (e.g. faux leather couch, low pile rugs if at all), etc.

Those who want to maximize ROI use leverage.  

Of course to maximize your tax benefit it needs to be sustainable over time. 

If your parents do not have experience and you are eager to learn, you should come up with a strategy with your parents so that you can start managing the existing portfolio and finding a way to grow it.First and foremost I would maximize the property as much as possible now.How well is it maintained - any deferred maintenance? 

On the flip side, saving for another property could delay financial stability if unexpected costs arise.A Balanced ApproachIf you’re still torn, consider a hybrid strategy:-Focus on maximizing your current STR’s performance.

The renovation aimed to modernize the property, enhance its appeal to potential tenants, and maximize its long-term value.

For anyone considering this, it’s probably worth consulting with a local land-use attorney or planner to navigate the specifics and make sure you’re maximizing the opportunity without running into red tape.

You want a property that has the highest probability of maxing out on appreciation.Once done, you would want to explore the options below to maximize your rental income:- STR- MTR- Rent by RoomYou should go into this understanding YOU will live in the worst unit - in an illegal unit in the basement if you can!

If the property was misrepresented in the sale documents, there could be grounds for legal recourse, though this might be more challenging after the rehab.In a similar situation, I’ve seen investors focus on maximizing their returns by operating within the legal limits (e.g., as a single-family or duplex) while still exploring long-term solutions with the city.

If you are up for it, you could consider renting out the bedrooms in your own unit for maximal rents.