And if rents continue to increase in the area, the cash flow could be closer to $300 per month if I refi in about 2 years.

ADU increase value less than the hands off ADU addition, but a developer is not a hands off ADU addition.Thanks

They could also fix it on their own (as some of Scott's buyers do) , increase the value and sell it at higher price than bought, pocketing the difference. 

Just make sure you are saving towards those slow months during the peak months, buy a deal at the right price (don't overpay just because its a turnkey STR or you think it will make more money than projected), and look into ways to increase bookings during those slow months with some marketing and operation tweaks. 

If you spend time learning how to manage well, your income will increase, you'll save time, and you'll maintain your sanity with the courage to expand.

I like the cash flow and see the potential for increasing rents, but I’m hesitant about overpaying.

Target areas with high rental demand, job growth, and population increases to ensure strong occupancy and appreciation.

In some homes planting the front or placing pots could increase the curb appeal, in others it could be paint or furniture etc.

While less than 10% of the mortgage industry offers 40-year mortgages, here's something to factor in: they often come in with a rate increase of 20-35 bps.Assume 35 bps.$300k mortgage at 7.25% (30-year): $2,046$300k mortgage at 7.6% (40-year): $1,996Technically, it lowers the monthly, but not by much once factoring in the rate adjustment.

I am guessing stricter privacy laws can make this difficult.