Ensure all additions meet local building codes and have proper permits.In your specific case, converting the loft into a bedroom and adding a bathroom could be a smart move, potentially increasing your home's value and appeal to larger families.

You can exchange your property for a larger property and build your net worth faster through greater appreciation (because of higher starting value) and greater amortization.  

It is part of a larger building and I am not able to assess whether it is in some way a condo, and if so, are they up to date with any fees. 

To me, this would signify a larger rate cut to encourage more spending and economic growth.

Perhaps partner on a smaller multifamily deal (5-10 units) to prove your capabilities before tackling larger syndications.Leverage social media and content creation to build your personal brand as a multifamily expert.

This would let you use the tax to your advantage to purchase a larger nicer property in an area the provides higher cash flow potential.

Also, private lenders will be happy to give you funds for small rehabs and that will help you build a portfolio of rehabs so that they feel comfortable to fund larger rehabs for you in the future.We're a private lender, if you have any further questions I'll be more than happy to help you with those.Regards,Jackson

When deciding whether to hold, sell, or exchange, you’ll want to look at a few key metrics: your current return on equity (ROE), potential returns from reinvesting, and your goals for the property.Given your appreciation and the fact you're considering a 1031 exchange, it might make sense to evaluate if moving that equity into a larger or more profitable property could accelerate your growth.

@Miguelli Fernandez sorry that you became part of a larger conversation.

However, if you relocate or have a larger family, you may qualify.