I wouldn’t touch long-term rentals as the laws are extremely in favor of renters.

Tools like PropStream, Redfin, or Zillow’s market data can help you identify neighborhoods with high demand and favorable price-to-ARV ratios.

Too few investors are actively focused on stabilizing and upgrading their current assets in favor of scaling too quickly.

About getting out of the Rat Race.My family and I played it a few times, and what can be said in its favor is that there are a lot of opportunities to buy rental properties under different cash flow conditions.

When do you anticipate a favorable shift in appraisals for ADUs, if ever?  

Nine out of ten years it usually works in your favor, but that one down year could take a big bite out or your ***.  

Places like San Antonio might present more favorable cap rates, from what I read in Forbes recently.Refinancing could free up equity if today’s loan terms are more attrative, though that depends on current interest rates and the property’s updated value.

Unfortunately most lack the balance sheet to obtain favorable financing, can't afford to put any skin in the game and fail to make a compelling reason for why the investment makes sense or to justify the structure they are seeking.

Within the U.S. if you want to avoid the bureaucratic nightmares that often follow STRs you will probably want to invest in a well established STR market that already has laws favorable to STRs.

It will allow you to make the best investment decisions, not necessarily the investment decisions that are necessary to cover the living expense portion of the W2 income you lost and this will be looked at favorably by lenders as well.