Your biggest challenge will be what to do when something goes wrong: nonpaying tenants, maintenance, mother nature damage, etc.Recommend you include these in any management agreement you sign, so you're not overcharged when you need these services.

Make sure you know the impact that adding an ADU will have on any rent control. 12) investors seldom include the land value in the overall ADU costs.

Definitely worth factoring into your strategy, though

Owning rental properties, including STRs, does not allow you to fund SEP IRAs.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Examples include replacing a deck or renovating a kitchen.

For them, cash flow is not the primary goal; it is about appreciation and resale value.2. 1031 Exchange InvestorsAnother group purchasing these properties includes investors utilizing 1031 exchanges.

I recommend you include some of your key qualification criteria in the advertisement.

Market Selection: What factors do you consider when choosing a profitable location?

There are many folks, including myself, in this forum that can help and the more info you can provide (mainly numbers on the property), the more we can help you.