I'm sure every municipality will interpret the laws differently.65852.2(D) (iii) The accessory dwelling unit is either attached to, or located within the living area of the within,the proposed or existing primary dwelling or dwelling, including attached garages, storage areas orsimilar uses, or an accessory structure or detached from the proposed or existing primary dwellingand located on the same lot as the proposed or existing primary dwelling

Long distance investing/managing is an obvious for me since I move every couple years, but I retire from the Navy in 5-7 years, and I'll finally settle in one place. 

We manage several multi-family properties in FW. 

@Jerry Chilimidos,Here is a list of lenders who specialize in lending to IRAs and 401Ks:https://www.biggerpockets.com/member-blogs/2810/50272-list-o...I don't know where your rentals are located and how they are performing but selling might be an option vs doing cash-out refi.I would certainly consider option C.

I am also involved in management at one of the largest STR property management firms in Cashiers.

I has two GREAT property managers that immediately come to mind, one handling 5 high end high rise condos I owned in Phoenix and the other one handling a 12 unit very lower end apartment building I owned in Arlington, Texas.  

This will save you time and effort, as you won’t have to travel long distances to manage different properties or handle tenant issues.For your first investment, I suggest starting with 2-4 unit properties.

Your plan to house hack a multifamily property in Indianapolis is a great strategy to start building equity and learning the ropes with manageable risk.

If it's in a good location anticipated to go up in value, it could be worth it

You'll let them break their lease and hand them cash.I manage 400 rentals.