I understand the relative inputs to figure out a return properly, but generally speaking, rental real estate investments should produce 10-20% for knowledgeable investors to make an offer. 

If your long-term plan is to keep this as a rental after they graduate, then setting it up as a proper rental from the start can give you better write-offs and a smoother transition.In short: short-term = homestead simplicity, long-term investment = rental structure.

It's likely you have problems because you aren't doing preventative maintenance.Pay a service to go over either weekly or at every turnover and balance the chemicals, make sure it's clean and operating properly and ready for the next guest. 

If you proceed, make sure you go through a competent attorney to have this loan properly originated and documented. 

Proper structure, preparation and knowledge will alleviate 75% of the concerns.  

For the past 10 years I have been installing doors for a big box store full time, but this allows me to be in 15 to 20 different neighborhoods daily.

This can potentially let you offset income with deductions and may help you qualify for tax breaks like those under real estate professional status — but check with a tax pro, as it depends on your hours and other income sources.LLCs & tax strategy:Setting up a cleaning or property management LLC could help you properly expense cleaning and maintenance as a separate business.

If you want to pursue the ADU BRRRR, make sure you line up cost segregation and properly document HELOC use so every dollar of interest is deductible.

., time spent on guest communications, cleaning coordination, repairs, marketing, etc.).Proper documentation not only supports your position in the event of an audit, but it’s also essential for meeting the IRS thresholds for material participation under the STR exception.happy to help.

I will look into the insurance premiums to make sure I'm accounting for those properly.