For example, they won't have to cover your personal belongings (clothing, furniture, etc.) but they may increase the amount of liability coverage. 

The motor is out in our rental washing machine, to save us the back and forth we are leaning towards replacing the entire unit but in the mean time do leave it up to our tenant to figure out how to wash her clothes, do we reimburse her for money spent at laundry mat?

Kitchen items, a 1992 32" TV, mattresses, broken dresser, scattered articles of clothing, VHS tapes, etc. 

You can make minor adjustments based on the type of appliances (dishwasher, clothes washer and dryer, air conditioning, etc.) and the size of the rental.

You can make minor adjustments based on the type of appliances (dishwasher, clothes washer and dryer, air conditioning, etc.) and the size of the rental.

The household expenses (utilities, medical, transportation, food, clothes, childcare, pocket money etc.) total $2,000 per month.

, I see my friends buying teslas and fancy designer bags/clothes and feel why the hell am I being frugal just for the sake of building long term wealth.

Whether it's buying a new car, clothes, house, etc I recommend buying things that will make your life better in the long term.

.* Multifamily/Apartment - Ditto* Co-work office space - They could run the day to day operations, and we could provide them a small apartment to stay in* SFH - We could help them get a place of their own so that they (well, WE) can stop paying another landlord rent and build equity* STR - There are a lot of opportunities for vacation rentals, but again it comes down to cash* Retail store - We could acquire a small business selling food, clothing, etc. 

For example, if a guest were to stay at your place and have no issues with watching TV, charging phones, washing clothes, taking showers, cooking, lighting, etc., they wouldn't know the difference between your place and the other place they could have booked.