What I'm thinking about is to combine bedrooms 1 and 2 into a large primary and add a full path adjacent to the current full path. 

It's just a product of the modern internet age and you are right, they always have a new way of skirting the rules.

However, most banks have seasoning periods now so you probably wouldn't be able to actually tap into that equity for at least a year since your original loan was likely just to build.These equity plays are a different strategy, but combined with usual appreciation, can also work, especially in some markets more than others.

I like the fact that you combine your target avatar to your investment target.

I was drawn to this deal because it aligns with my strategy of combining immediate rental income with long-term development potential.

This fully renovated 4-bedroom, 3-bathroom home features high ceilings, modern finishes, and a downstairs bedroom for convenience.

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

Combine both strategies. 1031 into a small multifamily where you live.

IMO, this combination of lower NOI growth and increasing interest rates will not only cause cap rates to expand / values to decline... it will also make it more difficult for owners to refinance, even out of "safe" long term fixed rate permanent debt.Personally I would not want to own leveraged multifamily assets now for this reason.  

The influx of young tech professionals is driving demand for modern, amenity-rich apartments and smart homes.