During this time you are not generating any return from the money invested in the ADU.

It currently has 14 out of 17 units occupied, generating a monthly income of $6,300.

Far too many investors spend way too much time, money, and energy creating LLCs or other complexities that serve no purpose.An LLC is useful for two things: anonymity and legal protection.

Essentially, the cap rate is the proportion of Net Operating Income (NOI) to the property's value or selling price:Cap Rate = Net Operating Income (NOI)/Property ValueThis ratio offers a direct method to evaluate the yield a property generates in relation to its cost.For advanced real estate investors, integrating additional factors might prove beneficial:Vacancy rate: The duration the property remains vacant.Operating expenses percentage: Includes insurance, utilities, and maintenance costs (excludes mortgage payments, depreciation, or income taxes).The adjusted formula for net income, incorporating these considerations, is:Net Income=(100 − Operating Expenses %) ×(100 − Vacancy Rate %) × Gross Income

Long-term rental and a short-term rental are two completely different business/investments.You should understand what each requires and see if you are comfortable with them.Short-term rentals, on paper, generate more income but require more work.

STRs generate about as much hotel tax revenue as the hotels/resorts so there is support at higher levels:  https://poconosvro.wildapricot.org/Economic-ImpactLocal regulation is rough.  74 municipalities each with their own zoning and STR ordinances plus most of the housing stock is in planned communities, many were built as vacation/resort summer homes.  

A lot of people don't understand that it's only a lead generation funnel.

This is how you can build generational wealth without using your own money.

Here’s a quick breakdown based on my experience:Building new construction gives you full control over the design and materials, allowing you to incorporate the latest energy-efficient systems.

Not sure what new western is, but in general you generate a target list using a tool like propstream and you call it asking if they would accept an offer on the property.