I was chatting with some of my lending buddies at big banks and they are all backing away from the CRE space including office because operating costs are increasing more quickly than rents.

My buddy's 3-flat just sold for $100K more than what he paid for it a year earlier.

I would tell people today that if you buy a primary residence expect to stay in that home for atleast five years, especially with a FHA loan which has lower down payment as the current forecasts for home appreciation or very low which with closing costs on the buy and sell, it will take several years to have equity in the property and enough to be able to sell, so that is something also to consider.

@Jennie Berger The RS-3 Zone allows for Single-Family residences & 2-Flats as "Permitted Uses"; however, the RS-3 Zone still requires 2,500 sq.ft. of lot area per unit (i.e. 5,000 sq.ft. for a 2-flat) unless the lot meets the exception for the characteristic of the block as previously mentioned by Nicolas; then it can be reduced to 1,500 sq.ft. per unit in order to construct a 2-flat.

Investment Info:Single-family residence fix & flip investment.

Im basically looking for advice on how i can save as much on taxes as possible.Part of the property is your primary residence, which does not qualify for 1031 Exchange treatment.

Investment Info:Single-family residence buy & hold investment.

Many of the neighborhoods which intersect with downtown are experiencing waves of new residents looking to join in on the action. 

,I have sold and been managing properties that are near the MIA and haven't had any complaints from residents who are living in them.

IMO this is much too little additional return to put your personal residence at risk.