Right now with the feasibility study We're anticipating about $4,000 for the SFH and $2,200/mo/unit on the ADUs, totaling about $10,600/mo in rent revenue so the initial rents look great.However, I don't know how the loan will play out.

This goes back to when the states acted more like individual countries and didn't play well with each other.

You'd be better off just investing in one of the many note funds rather than straight-up gambling for a couple hundred extra bps. 

My belief is there are 2 primary plays in coastal CA cities 1) patience (long term coastal CA RE has always produced good to great return) 2) value add.  

Another consideration is that he may be retiring soon so do we need to make the purchase before he retires because DTI will come into play? 

As a DSCR specialist, AZ is one of the 5 states that makes it strict for lenders, so less than 20% of DSCR lenders can touch it.Credit will play a factor, but assuming solid credit, 75% LTV at around 7.4% with no buy down.

The increased potential returns comes with significant increased risk which is not playing out well for many right now.

We started playing around with AI Callers for inbound lead appointment setting, the results are pretty encouraging.

Look into Columbus if you looking for equity plays and strong appreciation. 

If this is the case, don't be afraid to do the bare minimum to get the space up and running, and then add items as needed over time after you have some rental income to play with.However, if you are planning on transitioning these to STR's in the future though, I'd definitely recommend getting as close to fully set up as possible before launching.