Hello Mike, It is nearly impossible to answer this question without taking a deep dive on the numbers of each but often times in expensive markets like Seattle the cost of construction is so high that it doesn't make sense to tear it down unless you can build something way bigger/nicer.

Here’s how you can stay informed and ensure your rental properties meet all legal requirements.1.

I had several tenants complain that they are impossible to keep clean.

If you decide you need to hold the property it makes refinancing either impossible or expensive. 

You were literally fine with what we were doing for you up until you found out the tenant left after closing because you tried to say we knew about it which is impossible as we never had contact with the tenant ever.

😊In other cases the ambiguity made it almost impossible to buy and insure. 

This is something their screening probably would have caught, or their system would have a legal procedure to deal with it.

Any prospective resident with bad credit or a prior eviction is going to have an impossible time finding a place to live.  

.: Is it legal, per the IRS, to rent my primary home back to myself? 

Just to add to what has been said here - if the seller described this as a triplex on the sale documents, they might have a legal liability.