Want to reduce your competition further - take on rehabs sane people will run away from.

There is no "rule" for reducing or adding bedrooms to a residence.

So Those capitalized expenses do reduce your net profit.Unfortunately though, if you do a 1031 exchange as @Drew Reynolds, you must reinvest all your cash proceeds and purchase at least as much as your net sale in order to defer all tax.  

While I'm still not 100% sure we have made the right move in terms of numbers, I'm pretty confident we are in the right track based on what we have taken into consideration Vs what we've been reading.Now back to my question, our first rental is been on the market for a little over 2 weeks and after reducing the price a little we got a better response from potential renters.

While I'm still not 100% sure we have made the right move in terms of numbers, I'm pretty confident we are in the right track based on what we have taken into consideration Vs what we've been reading.Now back to my question, our first rental is been on the market for a little over 2 weeks and after reducing the price a little we got a better response from potential renters.

I would say my priorities are: (1) good/stable/consistent renters with a good property management company (reduce my time input), (2) and (3) equally, cash flow and appreciation.  

The wholefoods and other big chains slating to open is the ara is what im watching closely brfore pulling the triger. the hopes is that wilk crate jobs and help to reduce the crime rate.

The goal of a rental is to reduce your maintenance.

By owning rental properties you can survive through most recessions and those happenings should not reduce your occupancy and enable your rentals to keep on paying.  

They are likely unable to invest the $10MM immediately, reducing the final IRR.Whether any of this is actually true, I don't know, and probably varies on a case by case basis.