It doesn't stop here though, because the addition of the apartment added massive value to the home we are able to access more equity which we are going to use to build 2-4 more units in our back yard (we have a large backyard that runs all the way back to the other street. 

I would advise at the very least actively looking into it and seeing what your options are and if something is appealing enough using a 1031 to put into another, larger property with a ton of potential. 

I have been pretty active in the Sedro Woolley area as a RE Broker over the past two months.

I think investors overpaid...some bought from seminars local realtors would take to California to sell brand new golf course community homes or old apartments in excellent school areas “renovated” into condos and sold for more than the single family 3-2-2s down the street.

You need to decide a few things first, like whether you want to be an active investor or a passive investor. 

I like to utilize these tools when I am doing "mindless activities" such as washing dishes, getting ready for work in the morning, driving around, etc...My last piece of advice is find a local REIA which is like a real estate investors club.

Do you know anything about that particular street?

The insurance on this property has been more so a torn in my side than anything, i bought the property when i was active duty in the military, had a normal insurance policy on the house, when i moved out and rented it i called USAA and asked them to give me coverage to rent the property to a family member, because at the time i had a family member living with me and they were taking over the property and paying me rent.

- I was recently a victim of wire fraud on a mortgage transaction and in speaking with the FBI, activity has been rampant lately. 

After 3 months of leasing activity the property owner unilaterally cancelled the lease.