BP, please consider updating and improving your tools.

But before exchanging I am "improving it".

Minor interior improvements, professional photos and better advertising for short term rentals.

I am having the locks replaced with ones that have an audible alarm if someone tries to force them, and I am improving the lighting on the property. 

Tenant acknowledges that Landlord’s adoption of this smoke-free policy and the efforts to designate the Premises as smoke-free do not in any way imply the Premises are any safer, more habitable, or improved in terms of air quality standards than any other rental Premises.

If approached correctly (hand picking those with the greatest potential for STR cash flow improvement + best current as-is cash flow), Sedona SFH's between $1M - $2M are yielding gross monthly income at approx. 1%-1.5% of purchase price + renovation, especially after reasonable improvements (Some are completely turn-key but have higher cost, some need $50k - $200k).And I agree with another post that in most areas, this is not attainable anymore.

You'd have to subdivide most likely to build two homes (never heard of a residential zoning that allowed two homes on one lot, but I guess its possible).I guess you could keep ownership of the land in a LLC and sign a 99year ground lease to each of yourselves so that the improvements are your personally, respectively.  

This post is confusing, when you're referring to lots, are you referring to "land" or improved properties, ie with structures/homes on them?

I am not going to use the money to improve the properties. 

STR it if you want max flexibility in the short term and intend to slowly improve it w/a mix of personal + STR use over the long term.