In this market, yearly rent increase of $50 x 6 units is expected.

If you sell for $525k and it costs you $35k in “selling costs” (commissions, title insurance, concessions, etc.) then you need to buy $490k.

Purchased for $850k.2021 - Remodeling cost $32k2024 - Moved to a different house.

With my down payment, closing costs, and renovations, I will have put down around 70k (down payment and renovations).

In most SFH areas the ADU adds much less value than the cost to add to the ADU.  

Right now we pay our cleaner $300 per turn but charge guests $250.The costs of having a STR about an hour outside of town.

If this property were to make $225k without the additions based on its size and location, would it be worth it given the capital cost?

Can one take advantage of the tax deductions associated with rehab, appliances, furnishings, STR set up costs, etc) that were required to get the new property STR ready in Tax year 2025?

Just toss all the interior items - it is not worth the time and opportunity cost.

Some of this will cover expenses, but the extra will increase their cash flow.