It is my home.But if you look strictly at the numbers, I guess it is.

The code requirements are the same for anything from 3 or 4 units and up, so it is very cost prohibitive to build a 4-plex when you factor in things like sprinkler systems, exit signage, parking requirements, etc. 

Still, even after accounting for all those things, existing construction comes out ahead strictly from a numbers perspective

Because of its location, I cannot have two proper units, but can have a main unit and an ADU or rent as one house (although I'm hoping the new development will bring a change to my zoning code) The basement has 8ft ceilings and is completely finished but I'm thinking of digging down behind the rear wall to add a full bedroom and reconfiguring the floor plan to accommodate another room, kitchen, and door to walkout (2 bed/1bath unit).

For tenant screening, we want high quality person and can wait to get one, but is our criteria too strict:  740 credit score, 2 month sec deposit, 37% max debt/income ratio?

NO emotions here, strictly math.By pure happenstance, we ran into a different property that seems to make sense financially, but is a little more scary then we thought we were ready for.Local to us, a commercial/residential building is for sale. 4 store fronts street level, 2 apartments upstairs, and 1 large unit upstairs that needs a little rehab to be leased out, as it was occupied on and off by the owners kids for many years.The 4 retail units, and the 2 residentials are all spoken for with good leasing history.

Baltimore has some pretty strict requirements for STRs, the most significant being that it must be your Primary Residence (I don't believe we can post links in the forums, but google "Baltimore City Department of Housing & Community Development Short-Term Rentals" and it should be your first organic hit).If you're going to go down that path, make sure that the numbers work as a long term rental once you're ready to move on.

We rehabbed a SFH in a historic district and broke even, which is not ideal as a business, but the home meets the historic code for another generation.

I am going to list them:TurboTenantIt is completely free to advertise your rental, screen your tenants.You upload your pictures, write a description and it posts to 20+ websites for freeTakes about 24-48 hours for leads to come in.Once you select a tenant, they pay for the background check, upload documents (paystubs, ID, W2) and it is all set to you.It even helps you build a lease after you select a tenant (there is a $30+ fee for the lease)My referral code (https://turbotenant.com/r/T3du... disclosure.

Little Rock area code 72209.