With its own exterior entrance, soundproofing, and hotel-like amenities, guests have a comfortable space without ever entering our living area.

Even though you feel you don't reach the full cash flow potential, you gain on making the lives of those families more comfortable.

However, appreciation is never guaranteed, so you’d need to consider how much risk you’re comfortable taking.Pros:Potential to cash in on appreciation in the future.Flexibility between STR and LTR depending on market conditions.Cons:Requires holding costs and maintenance during the interim.No guarantees of appreciation.4.

Despite that, case in point- a guest decided to wash the comforter, with the duvet still on it . .. .

On the flip side to investors , other than the obvious advice to do your due diligence and stress testing seriously, also do the important work of self assessing your own true risk tolerance, ultimately defined by “are you comfortable losing it all” in a particular investment or asset category.  

How long can you comfortably stay in this house?

If you’re comfortable with the tenant risk and low cash flow in exchange for a solid property in good condition with long-term appreciation potential, then proceeding could make sense, maybe you you can negotiate some concessions?  

It's a method of getting them to participate so they feel comfortable asking questions and learning.

Choosing the best first property depends on the timeline, learning opportunities, financial comfort, and property appreciation and market demand.Good luck!

When there is only so much land in an area the county or city tends to relax zoning to allow higher density levels over time.