This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

I'm looking to get involved in this space, too. 

Nothing in the STR space is one size fits all, but the ideas can help others see the potential in their property. 

Quote from @Jacob Hrip: I have read this one years ago and it is a great book by a very successful guy in the space!

There can also be chemicals in the treated lumber that are harmful to the environment.Invest in a good screen or built in door system.  

Over the course of a weekend—and fueled by beer, food, and sledgehammers—we completely cleared out the space.

We have more money to put down, and will need to put more down because we wont be house hacking (we have 5 children so space could be a problem if we tried that).

As far as the users' preference of view over space...

They’re built for heavy use and have faster drying times—usually 30–45 minutes—without needing major electrical changes.If you’re up for a bigger investment, adding extra stackable units in the garage could be a great long-term fix, though it’ll mean some electrical work and setting up proper ventilation.I’d probably go for the commercial upgrade in your current space first—it’s quicker and might solve the bottleneck right away.

The house is 3/1, and about 1200 sqft in the living space though, so pretty quick interior wise.