If you are limited to adding the new unit as a JADU, it typically lowers the value of the property as you speculated maybe a little for the reason you specify but more so because JADUs require owner occupancy.  

If you're looking to purchase based on appreciation speculation, venture a little further out, such as Pittsboro.

@Oscar Zendejas I'm down with sticking to the cash flow side of things and not 'bank' on speculation.

Buying on actuals is important otherwise you are speculating.

There are some slow-BRRRR opportunities in pockets of the city (and by slow I mean it is more speculation than I'm typically keen on, but there are some options higher on the risk curve).The biggest issue in our market, similar to most others in the US right now, is that sale values have surged far in excess of rent values. 

The upcoming seasons do not hold much promise either, thus rendering it a speculative venture to bank on its resurgence next year.

This is very speculative and risky.

I'm not involved with MI/OP in any way though, that's just speculation based on BP threads.Now that you are in contact with others in the same situation, have you considered the idea of a group visit to Indianapolis?

No one knows what interest rates are going to do in 6 months; there is a whole industry of people that speculate about rates, but no one knows. 

Based solely on this speculation, pine manor has the best potential for appreciation in my opinion.