Most likely the biggest issue would be when you're selling as it will likely come up the bathroom wasn't permitted.It's not too late to get it permitted.

What are the biggest pitfalls and things to avoid?

There is a lot of false information out there regarding 1031 exchanges and one of them is that you'll have to pay taxes eventually. That's a myth!If you keep rolling one 1031 exchange into another until your time on E...

Obviously price will be the biggest factor to move a SFH but there is more that than just a number. 

@Jeffrey Anderson GilI would make sure especially in CA that these meet local building code specifically in regards to earthquake.

The biggest challenge was getting past the initial fear that comes with a flip.

We don't recommend that but were watching closely more fore science :)  The automation with Turno and Schlage encodes is by far the biggest help plus it gets a little discount on the property consolidation with Pricelabs. 

If you would have simply held on and collected rent for 72 months, you would have been up money...and that is buying at the peak right before the biggest real estate bubble in modern history.

And anything within a block or so of the ocean is going to take an incredible beating from the winter weather salt air etc etc.. and then you have the Tsunami that is coming with teh massive earth quake that will come and that will wipe out whole towns on the Oregon coasts.

Maybe that thesis is wealth flows to the biggest and best cities like NYC therefore real estate will outperform else where in the country.