I'm just curious...I'm here in CA, and with the cost of housing, I'm always wondering if my home is too large and if I should be finding other ways to invest my money, such as buying rental property (2 town homes instead of a house for example) and moving into a house later. 

As an out of state investor, I made the decision to pull my equity out as construction costs in the area are incredibly high with limited availability right now.I completely agree that luxury rentals would be my prime target for a 1031.

Rates, closing costs, and points also play a huge role in making the right move and can save you extra.You also want to make sure you have multiple terms like ARM products, Interest Only, No Prepayment penalties, etc.If you want to talk REI feel free to reach out I enjoy helping when ever possible.  

What does something like that cost?

What I mean by that is for instance in a place like Newport Beach California where houses cost millions to buy there may be apartments available for 2000 a month, which is way less than the per square foot of a purchase.

If it's buy and hold make the landscaping low to zero maintenance to save on costs or having your tenants be responsible. 

But we have a 2.25% interest rate on this house that would cost a lot to try to buy down to that rate in today's market.Just something to think about as you are looking at properties, maybe ask the seller or listing agent if it is possibly a VA loan and how you might be able to make a deal if they have a great rate already.

Remember, the cost of a mini split is really driven by the number of head units inside and not the outside unit. 

My main concern is the cost of turning the property into a MTR especially with this being my first property.

Now that there is no overhead cost of the mortgage, how much should I charge my tenants?