Return:Finishing the basement and adding bedrooms can add significant value, especially if your local market places a premium on additional living space.

If you are renting the house out (not living there) you can not legally take a homestead exemption.

Just a simple 499 sq ft city approved plan, single story, 1 bed/1bath/full kitchen adu with living space.

Hey DenisI have commented a lot about arbitrage in a general sense here, however I believe I am uniquely qualified to answer here as I live and operate about 65 units in this specific market.In 2016 I got my STR start arbitraging a Gulf Front mansion that was in foreclosure and I got a great deal on. 

We’re fortunate to have an above-average income and live well below our means.This summer, we’ll be moving to Detroit (PCSing in August), and we’ve saved about $120,000 to invest in addition to having funds set aside for the home we’ll purchase in Detroit.The reason I’m posting is that I’m struggling to decide how to best allocate the $120k.

I live in CA and drove that route for years to visit family in Phoenix, AZ. 

We literally walked the property on live video with you and showed you everything you asked to see.

I'd like to purchase an STR (I probably should have said that), being that I live in South Florida, Orlando isn't too far, but also not close enough that I can drop by anytime, so I thought I'd need a PM, or perhaps just a great team in place as far as a mechanic and cleaner, realtor and lender.Thanks again!  

P.S; We live in Wilmington NC so both markets would be "long distance" P.S.P.S there are no reasonably priced multi family properties local to us.

I’m looking to start in DFW since I live in Arlington but eventually I’ll be open to other markets to diversify my portfolio.