No unexpected cap ex expenses, and as zack mentioned we've done a 1031 on a couple properties that appreciated quite well to buy other rentals. 

There are properties you can find that might already have an ADU or a layout that would allow a unit to be split off with a separate entrance (ex: converted garage). 

Indeed, as a previous international banker covering the Americas ex-US and Canada, I was warned that merely suggesting that we might do something in Belize would get me fired.

Note: there is nothing regulating the number of nights per year an STR can be booked, only a recommendation by some ex-host now E&L employee’s recommendation for 183 days, though at no time will that be cited in proceedings, but seems its certainly being used against 200 or so denver hosts this year alone.

And you mentioned Cap Ex.

We have a line of credit that funds the rehab costs.  1, Form an LLC if you have not already. 2,Track all of your expenses accurately.  3,Talk to a CPA about what you need to track and how (Ex:  new appliances for a home are taxed differently than flooring or paint, insurance, Mileage, disposables, tools, etc.) 

$6,100 PITI + Maintenance, Cap Ex, & vacancy reserves Versus whatever similar rent would be in the area.If you're okay with this deal not being a homerun initially, but allowing you to live in an ideal location in a nice home with slightly less mortgage cost, then it may be worth it. 

. $1500/month cashflow which is good as well (assuming you have budgeted for repairs/maintenence/cap ex all that as well). 

In Lake Tahoe many condos are experiencing huge increases in HOA to cover increases in insurance and cap ex and many owners are selling. 

Ex.