As that pilot program expands and eventually goes Service wide there may be some additional complications for you.

If you were thinking about moving back in so you could access the profit through the primary residence exclusion you'll only be able to prorate it between the times of "qualified use" (as primary) and "non qualified use" (as rental).  

In addition to the energy savings the customer will have (more $ they have to pay rent), another perk of tankless units is lifespan.

Paul, these lower-end areas tend to be the places where you can cash flow like you're describing, in addition to Richmond, Vallejo.. 

Not sure what state you are operating out of, but you may reach out to an experienced wholesaler, and an investor friendly broker for additional information.

How long did it take to do the rehab/addition? 

If you have the debt bandwidth, you could potentially take on additional loans and use the equity from the sale as down payments, giving you a tidy little portfolio pretty quickly.

The patio is deep and should I want to in the future I could build up in the back with an addition.

In Lincoln, RI I not only ran into an additional Fire Tax on the property but a Fire Tax on the vehicle AND a $100 per unit Sewer Tax.

I would be getting an additional $3000 if I stay for another semester of college in spring, not including any additional income i may get from saving with a part time job.