Condo: Condos may offer maintenance benefits, while homes provide more control.Size and Layout: Ensure the property accommodates your child’s needs and potential roommates.HOA Fees and Rules: If considering a condo, check for restrictions that may impact student living.4.

Asking in the correct forum will get a better response.Read the RULES!

Property taxes will likely be reassessed based on the transfer value, so confirm local rules to anticipate potential increases.If you hold the property for at least one year, you can use the equity as collateral for a construction loan, aligning with your long-term financing plans.

Hello,  I'm a FHA / Conventional & Private Money mortgage underwriter since 2012,  If your a first time real estate investor and never applied for Hard Money or Private Money lending for funding, I would suggest to stay with traditional lending (conventional) until you get familiar with real estate finacing.

And, sounds like you're exactly at the 1% rule, which is golden!

Or do they apply an equalization ratio.

If you have a rule, enforce it. 

However, if you sell instead of rebuilding, the IRS may include part of the payout in your taxable gain unless reinvested under the §1033 involuntary conversion rules, which allow you to defer taxes by purchasing a similar property within two years.If the property was your primary residence, you may exclude up to $250K (single) or $500K (married) of gains if you lived there for at least 2 of the last 5 years, likely resulting in no taxes owed.

The rule is based on if it's "within the primary dwelling unit" of the taxpayer or not. 

This is who will approve or deny your plans when you apply for a permit.