Based on my calculations and preliminary research, I have found that the Bay Area offers good returns from developing land, although acquiring level land and obtaining permits can be challenging.I have a few questions:1) Is it recommended to purchase a complete house plan from online sources like ePlans or similar websites and then customize the architectural design before submitting it to the municipality?

Since the properties are based in CA I will have to register the WY LLC in CA which will expose my ownership and thus I will have a member manager trust that will be the owner of the LLC.My question is who should I make the trustee of the land trusts?

If you  do plan on moving into the quad you should identify what unit you desire - maybe based on the rent amount or the tenant behaviors, etc.. 

So I don't think it's a trend, I think it's the reality of the play between the population explosion, gentrification, and affordable housing. 

With a loan I took against my retirement savings, I have the cash for 25% down and then some, but I'm hoping I'll have some financing options based on the work that needs to go into the place.

I found one here that I've been using since getting started in real estate investing last year:http://www.fastbusinessplans.com/business-template...It already includes the Schedule E categories that you'll want to use, and has a summary page at the front that autopopulates based on the info you enter for each month.

@Patrick Irish based on what you say, the Sec 121 Exclusion and the 1031 Exchange both seem like they'd be good options for you to defer capital gains on sale of the townhouse.Sec 121 Exclusion has 3 requirements: First, Determine whether any of the automatic disqualifications apply (acquired property through 1031 exchange in last 5 years, or subject to Expat taxes)Next, meet the ownership requirement -> you owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale (date of the closing)Finally, meet the residence requirement -> owned the home and used it as your residence for at least 24 months (or 730 days) of the previous 5 yearsThere is no “Wiggle Room” but there is a Sec 121 “partial exclusion” for people like you that missed the residence requirement by a few months.

You can play with pricing to see how it affects demand, so you have a better idea of the quality of prospects and how many you get at different price points.You could also then modify your ad to identify a target MoveIn date and start accepting & processing applications.

Local laws definitely come into play as well

Considering seller has no tax returns to show he may struggle to sell based off what he claims.