That will allow you several benefits like adding the square footage to your property, having it appreciate in value as more ADUs are added to the neighborhood, legally rent it out within the city's parameters around long-term, mid-term, and short-term guidelines, and feel good about your investment.

They've also enacted a bed tax specifically targeting short term rentals.

What happens if you buy the duplex with a conventional loan with the purpose to build an ADU to move in shortly afterwards?

In short: rents and cash flow have not caught up with the rising interest rates since 2022.

Choose a location with low-cost homeowners insurance because they have the lowest risk of natural disasters: Insurance - ValuePenguinIf you follow the above process, you will now have a short list of potential cities that are very likely to appreciate much faster than others due to their strong fundamentals.

Quote from @Jay Hinrichs: Quote from @Bruce Lynn: @Jay Hinrichs      But I do understand the OP points and I think that folks just really dont understand the work and risk involved in ANY rental property short of NNN leases with super strong companies Exactly. 

Especially if the other kids follow suit, they'll likely need some kind of housing for a significant period of time nearby so buying now wouldn't be the worst move. 

Short term, "higher cash flow properties/areas" will be better, but long term "better appreciating properties/areas" will yield a better return (in my experience).

It can sometimes happen even shortly after buying a unit - life forces change sometimes.

We’re sorry to hear that your experience fell short of your expectations, we value this opportunity to reflect and improve.We worked closely with you for over a year to prepare your property for success in the short-term rental market.