Run comps like an appraiser, not a wholesaler.Use the same zip code, same bed/bath count, same construction style.If your ARV isn’t locked in with confidence, nothing else matters.3.

Look for distressed signals like overgrown yards, boarded windows, maybe some code violations.

Secondly, an additional third unit requires either a zoning variance or special use permit on your local code, aldermanic approval notwithstanding.

It could be a few zip codes, but neighborhoods within zip codes can make a big difference.

Lots of building code requirements that won’t be inexpensive to develop this into an ADU.4 Secure the proper permits and all required inspectionsAside from zoning and building code issues, the question should be what the cost is and what will it rent for and how long to recoup your money.

For your first BRRRR stop thinking perfect zip code and start thinking perfect math.

Multi-Family because the Vacancy rate is lower therefore, overall cashflow is more consistent.In Tucson with $70k down on a triplex (646-648 N Desert for example) zip code is 85711 so rents are averaging $1.42/sqft, then adjust your purchase price/ Down payment/ points buy down, to accomodate for current and future rents, rents are going flat currently.

Tools like PropStream, Propwire, PropertySearch, BatchLeads, or DealMachine are most effective when paired with a clear strategy (absentee owners, tired landlords, small multifamily in specific zip codes, etc.).

Your criteria is solid, and PA can work well for exactly what you’re describing, especially if you stay disciplined on neighborhood selection and rent-to-price.We do a lot of business in the Lehigh Valley, so a few practical notes on Allentown and nearby areas:Allentown can cash flow, but it is block by block.The same zip code can swing from stable to headache fast.

Generally there aren't huge "loopholes" to let you avoid things in the tax code.