If you're new to investing, keeping an eye on property taxes and HOA fees in this area is also key. 

Does this change your opinion? 

Lancaster city limits short term rentals to only certain zones of the city so definitely look at the city website for that information.

Someone could have income from a pension, disability, investments, or even Section 8 without being employed.I'm not taking the time to study your market, but the ad looks pretty good.

For this reason, I prefer to plan renovations when a long-term tenant moves out.

Notice, I am NOT stating that the transaction needs to disclosed to the lender; just that a lender should not be given false information.  

Hi @Peet Bothma, would you be able to share the lender's information?

The city wants to tear the property and surrounding properties down Zillow said it’s worth 38000The city offer me 13000.I could use some adviceHard to give advice with limited information, but as a general rule, the longer you wait and the further down the line their project is the more valuable your property will be to them.Zillow (and all automatic online) estimates are very unreliable, so don't base on that.

While it is possible to convert an investment property acquired through a 1031 exchange into a primary residence, this requires careful planning.

@Chris Seveney - Chris I know you know this, but sharing this for a lot of less experienced investors out there.