The greater Phoenix, AZ, market is a fantastic location for real estate!

Pensacola is one of the cities where you can still find good investments around that price, and it's an area that is growing a lot.Feel free to reach out if you have questions about the market here in Florida. 

The real question is how many units are being built and what does net migration look like on top of demographics.I can answer the question for my market Milwaukee, because I have been tracking these metrics locally for the last 10 years or so.

Robuilt has some youtube videos where he covers these tax considerations.

But I started at a different time in the market cycle, and attribute my success to date to luck and caution, mostly to luck.

I run a property management group on Oahu and that's what we do, there are many similar services in almost every market. 

Please let me know if I can bring any value to you about the markets I've referenced.

what would make more sense in the current market right now ? 

I just come across Tarl's video of explaining his updated house flipping spreadsheet using Google sheets.

Assuming your market is similar, I would add an ADU not primarily as an investment.