., the taxpayer owned one parcel of land for 11 years and upon sale the court ruled it was inventory and would be subject to ordinary income taxes rather than cap gains.My point is, @Anna Watkins, that you need to speak with a savvy professional and lay out your facts/develop a defense plan before you redevelop.

Long story to lay out how we did it, and to encourage you. 

The inside layout was not friendly, both the 1st and 2nd floors needed a complete rehab, electric, plumbing, layout - EVERYTHING.  

I was wondering if someone can help layout the finer details of how this transaction would occur from the buyer and seller perspectives.

Lay out the increase over time to them.

The problem with owning 10-20 SFH's is that you gotta have a different system for each unit, a different layout.

Just snag the closest ones that have a similar layout. 

But all this depends how much equity you think the property will have at that time, because ARMS can also get you in trouble...I also love the spreadsheet layout, very clear cut & precise with the numbers!

I am thinking to make the half bath in white colors.The layout is on the left of the entrance there is a living room, on the right is a room.

The inherited tenants - with the farm of cats and dogs - I mentioned earlier, the renovation following their departure was pushing $25,000 .... yes, we changed the layout and upgraded the kitchen and bathroom ... but only because we had to rip-up the subfloor (and the interior partition walls which sat upon it).