I'm also concerned about the liability that I might be exposed to here by allowing what appears to be a business to operate out of my rental.

Yes, I use Zillow reporting as a start and look at other factors.

FHA allows the construction or renovation of an ADU on the property by refinancing into a 203k loan, but the property must remain your primary residence.This stuff is subject to change, lender specific, and subject to other factors.

. #1 is the primary reason, but #2 does factor in as well.

@John BerjIf cash flow is a top priority, factor in HOA fees (common with new builds) and confirm rent comps to ensure the numbers work.

@Mike Lambert That is highly dependent on a multitude of factors like size/luxury class/location/housing type/owner restrictions/etc.

I’m talking about getting thorough with expense estimates, factoring in property taxes, insurance, and a cushion for maintenance.

I would factor in time to travel to any market, but AZ is relatively quick compared to the east coast. 

This is bad math, once most people factor in their income tax bracket. 

Your limiting factor is the amount of INCOME you can do this with and for HOW LONG you can do it.