I am a new investor and these are some of the issues that I have contemplated as I develop my overall plan. 

I had a very nice couple with a young daughter come look at my nicest rental home (4,300sq ft with $2,800 rent).  

., 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.

Hello, I'm co-founder of the Harmon Development Group.

@Anthony Ciulla What you describe (further developing a property with additional units if zoned correctly) is very doable - that's mostly what we've been doing in SD for the past 5 years.Be very careful, though - the costs associated with doing it are far, far greater than most people expect.  

Nice job on the first investment property!

The East Oakland property also came with a nice discount and the seller did the sewer lateral. 

I am more motivated than ever to make a change and develop a solid real estate buy and hold portfolio.  

I like to add a nice tile backsplash in the kitchen and upgrade bathrooms with tile shower surrounds because I can do those myself and they add a lot of value.  

They are a nice couple, however do not have good credit yet checked out with their prior landlord.