We saw huge appreciation in the 2018-2022 inflation run up, but that has significantly slowed these days in my opinion.From a rental perspective your monthly income per unit after all expenses with a typical 20% down payment is likely $100-300 when you find a property that will cash flow.

Your improvement of an ADU unlike those other improvements provides house and substantial additional income compared to other improvements. 

I am just a guy who tends to give illegal advice, I guess.And finally, folks need to be aware that while many travelers pick the nomadic lifestyle for some of the awesome reasons: travel, excitement, variety, some pick it to try and increase their income to a level where they can earn their way out of terrible financial situations or decision making.

If you did not do a "wrap mortgage" or "mirror mortgage" to help them create "notes receivable income", they may need a cosigner to have enough income to qualify for their next mortgage.

My wife and I have overhauled our personal budget to reflect the 'pay yourself first' approach (allocate in order: income comes in -> invest -> donate -> fixed expenses -> variable expenses -> fun $$).We are looking to see what experienced people generally recommend for a holding tank for that 'invest' allocation while we target our first real estate deal.What financial vehicles have you guys used that works well for this?

My recommendation would be different if you were a high-income earner or if you wanted steady equity growth.

I am assuming that this means I can deduct interest paid to original lender and report the interest I received from buyer as income like Ashish mentioned? 

If you need current income, I'd recommend another fix/flip.

Due to the university there I worked with a lot of incoming families and getting what they needed for their dorms.  

Great rental income, strong FICO, low LTV (60% or below), strong liquidity and PFS.