Consider local trends, and proximity to schools, transit, hospitals, and reserves.

You've already put in some great thought, and with that ADU, you've got a lot of options.One thing to consider is starting with long-term tenants in the ADU for a bit and then transitioning it to a mid-term rental (MTR) down the line when you feel more comfortable.

Good morning, my wife and I have been running  transitional homes for men and women 18+ who struggle with chemical/mental health issues going on roughly 5 years. 

Focusing on neighborhoods with job hubs or easy access to transit may provide reliable resale potential.

My ultimate goal is to transition into full-time real estate investing.My current home is a 3-bed, 1-bath, approximately 1960 sqft, needing updates.

Invest in property management and gradually transition to financial independence.Good luck!

Then when its done you can use it as a STR, vacation home, or transition into a long term rental.   

This would give you more legal standing if they don’t leave on time.Walkthrough: Ensure you do a thorough walkthrough with your general contractor once the seller is fully out to assess any new damage or necessary changes to the scope of work.Planning ahead like this will give you peace of mind and reduce the chances of things going sideways during the transition!

There was actually even an Airbnb on Meharry Boulevard that was targeted by thieves while guests were inside.I have found some great returns for clients in transitioning areas but would say it seems to be a bit too risky for the time being. 

If you are going to complete the BRRRR method in a lower tier neighborhood, select a neighborhood with the fundamentals that indicate the neighborhood will transition to a neighborhood where home ownership will become more prevalent.