They also tend to offer good cash flow relative to their cost, especially in areas with high demand for affordable housing.

In San Diego at the current rates for a purchase loan (which has better rates than an ADU additions) at high LTV, I show 1% does not cash flow on a sustained basis.  

This will increase the return above what can be obtained on a passive investment.The flipside of having the power to control everything is that it can be alot of work (and a full-time job if a person is putting in sweat equity).

Could a return to independence help lower mortgage rates, or have other positive effects?

When analyzing deals, aim for 15-20% cash-on-cash return, 50-70% occupancy, and at least 2-3x your mortgage in revenue.Good luck!

It's a great returning property. 

How high can housing prices in the City of Detroit go?

The overall trend of the 10-year treasury appears to be downward reflecting as well right now, with the most recent high of 4.8% on 1/13/2025 failing to touch the previous high of 4.98% on 10/19/2023 and now sharply falling to 4.62% today (1/24/2025).

We're focused on high ROI coastal STR's and multi family.

You can’t ask for a good cashflow amount, only a cashflow rate of return.