I understand that it might be smart to have a good balance of cash in the SIDRA in preparation of something like this, but that cash sits un invested. 

Prepare for competitive offers by getting pre-approved, having a proof of funds letter, and being flexible.

@Will B.No.. even though I normally do my own tax preparation, when it comes to depreciation recapture the IRS doesn't give you any info on how to fill it out. 

Good luck with your venture. 

Of course, you can't protect yourself completely, but this will also help you prepare for buying the next properties a little better, and it's an exercise I generally do when I'm on a showing for a property I'm serious about so that I'm factoring this into my analysis to some degree in a "capex" reserve.Capital ExpenseRoofWater Heater x2All AppliancesDriveway/Parking LotBoiler x2FlooringPlumbingWindowsPaintCabinets/CountersStructure (foundation, framing)Components (garage door, etc.)

As the consumer, we should be well prepared with your personal info(credit scores, dti, taxes, insurance, etc) to get a baseline estimate.

For the month to month tenant you can change their lease rate as you see fit… but if you are changing it significantly you should phase it in to help them have time to adjust and prepare for it (in my opinion)… maybe across 2-3 months.It’s likely that your tenants are use to each other having already lived next to each other.  

Get buyers on board (maybe someone who doesn’t yet qualify for a mortgage, but is financially prepared to purchase).

Expand Your Search: Denver is competitive, so looking in areas like The Springs and Fort Collins can give you more options.Stay Flexible: Be prepared to move quickly when you find a property that fits your criteria.

I also found a more experienced investor to partner with on this deal so it was a great way to learn and prepare myself for owning my own property.