Working with the city to find a solution.There is a similar situation near me where an investor bought a short term rental house, rehabbed it, ran it for a while, and then got in trouble with the town after a neighbor complained and the town said short term rentals weren't allowed in the community. 

And your money is Trapped inside your house. 

I decided not to go that route and start looking for a good PM in Kansas City to buy some cash flow houses through and manage.

Focus on areas with strong rental demand, like Broad Ripple, Fountain Square, or near universities like Butler and IUPUI.Maintenance Costs: Indiana weather can be tough on properties, so budget for seasonal maintenance like snow removal and HVAC servicing.Additional AdviceKeep an Emergency Fund: Unexpected repairs or vacancies can arise, so having 3-6 months of expenses saved will help you weather any surprises.Build a Reliable Team: I have lists of contractors, handymen, cleaners and property managers if you'd like me to send.Good luck with your property and future expansion!

They are investing in infrastructure, housing, public safety and taking the steps they need to take to attract more jobs. 

I still have one house with some existing K&T.

VA loans can be assumed by anyone (investor, veteran who doesn't want to use their entitlement, and non-veteran) so long as the seller is willing to leave the portion of their entitlement that they used with the house.

Buying a new primary residence has nothing to do with the capital gains exclusion.It is when you go to sell the new house down the line you'll run into a problem.

I first started out in Real Estate by house hacking in college. 

My electrician insisted in rewiring my house without ripping out the existing drywall.