I am in this camp myself, as I do this full time.I agree with your point about focusing on long-term sustainability rather than chasing maximum rental income at the cost of increased tenant turnover or property damage.

This designation doesn’t cost extra or give the manager access to insurance payouts but ensures you and the property manager are aligned during incidents, such as tenant lawsuits or insurance claims.

I was chatting with some of my lending buddies at big banks and they are all backing away from the CRE space including office because operating costs are increasing more quickly than rents.

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

If you sell your property, the tax basis (original cost) of the property for the giver becomes the tax basis for the recipient.

If they want to pay $1,300/mo as is, saving you the Reno cost.

When you took in the increased cost of the build how did you arrive at that percentage?

HelloOver saturated STR in Ohio markets have caused many STR to drastically lower costs to as low as  $100 for entire bedroom home.My are higher and I'm not competitive with the lower cost Abnbs.I also feel hotel industry are mass building new hotels to compete with str. 

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

2.What are the best and most cost-effective solutions for managing this potential long-term issue?