@James Carlson It's my understanding you can still do up to 4 in a property zoned R4 or above as long as (as you mentioned) there isn't another STR within 500 feet. 

My zoning allows an ADU and this may be cheaper than renovating my detached garage unit. 

Yet that could also make it in an Opportunity Zone. 

My primary residence is a duplex in a flood zone that the bank requires flood insurance to cover the mortgage.  

Rented green house (now red house named Ron Burgundy) for $668.00.

There is currently a complication with zoning which we are trying to iron out before closing.

Cash Flow tenant owned mobile home park in non flood/hurricane zone in the south.

For example, often fire damage is water damage--they put the red stuff out with wet stuff.

Rents and returns look decent, but is this a war zone?

And they miss a deal because they think the house is falling apart or way out of their comfort zone (just like what happens with new buyers who don't have a decent agent to walk them through the inspection report!).