My ROI would likely be in the high teen range for a first lien position. 

If you can get a return in the mid-teens from doing that...Then I think it would be reasonable to require a much, much, much higher return if you are active.

Seaside does have quite a few family vacationers but by the boardwalk at night it becomes teen/ 20 year olds scene, it's kinda known as a party town.

I left the color decision to my wife and my teen daughter. 

Check out this link to a floorplan by Lennar, one of the country's biggest builders. https://www.lennar.com/new-hom...People seem to be drawn to the flexibility of ADU floorplans as they can use the space for all sorts of things: home office suite; room for an older teen; adult child living at home; In-Law unit; Airbnb; rental...

This might not be a big deal when outdoor temperatures are in the upper 30's but when it drops down to the teens or single digits for extended periods of time it can be problematic.

I manage Hedge Funds and Local Investors in Memphis and we are finding excellent deals that see returns in the Mid-Teens on an annual basis. 

Every inch of my 10-room house except the living/dining area is completely full of tenant belongings, such that it's verging on a hoard. 3 generations of a family (3 adults, 2 teens), are on the lease.

Now with inflated prices and interest rates rising the returns have dipped into the teens for on market deals.

I got into a syndication in my teens, then once I turned 18 I bought my first rental.