If it is a decent grill that is one thing but if you sell it to them and it craps out next week they are still your tenant so consider that. 

I'd work that with them to get a lower than market interest rate as well so that you can cash flow higher.Also, sober living is more risky of a business.

You can find some cheaper ones that are fresher to the market/more AI integrated, but those are pretty new so there may be some speedbumps to work out on them.

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I have good equity in my house that I can tap into and was thinking about starting with flipping houses to build up some cash to then be able to purchase a rental of some kind.

Quote from @Benson Davis: If you plan to call the city and do the whole permit process on the other stuff there is a high likelihood they call you out on the unpermitted room.

Sure, cash on hand makes things easier. 

I think that it's a very smart idea to keep the house and rent it out. 

You want a property that has the highest probability of maxing out on appreciation.Once done, you would want to explore the options below to maximize your rental income:- STR- MTR- Rent by RoomYou should go into this understanding YOU will live in the worst unit - in an illegal unit in the basement if you can!

If you want to retire early and get real freedom then figure out how to self-manage with handsoff systems like I do.