I grew up in Bucks County and started my career in Real Estate in Doylestown.

@Tyler GarzaYour "buy a new house, rent the old one, and trade up" strategy is a solid way to build wealth, but there are a few key factors to consider.

Why give up a couple percent?

Urban Lot Splits (ULS) allow you to divide a lot into 2 parcels, and Multi-Dwelling Unit Developments (MDUD) are allowed up to 2 units per lot.

I was drawn to real estate as a way of investing money I have saved up (around $130K with additional funds to leverage out of a 401K if needed), and potentially creating reliable cash flow over the next 10 years. 

Quote from @Denise Evans: Do NOT sit by and let him build and then hit him up for a "better price."

The money is to cover the damages, what you do with that money is up to you.

Our virtual meet up is around 30 people. 

We had to save up the 5% to get our first place with an 80/15 first and second mortgage.  

Form 3115 allows you to restore the fairness in this situation and "catch up" with the remaining $30k of depreciation that you failed to take in the years past.