@Paul StewartDoesn't really change the sales price.Example (ignoring closing costs):$75,000 house.

I recommend it to everyone as we are a true testimonial that it can change your financial future.

@Davante Dennis I think FHA guidelines change a bit with 3 and 4 units properties. 1 and 2 unit, I believe, are the same guidelines

Keep in mind that you cannot keep doing that method, you'd have to change location (couple miles away or closer to work), or if you stay in the same location you have to buy a bigger property.

Also, be mindful that with new law change of allowing the 1031 exchange only for the real properties, the cost seg might be harmful depending on if you want to ever do 1031 exchange.

Is the market in the area changing? 

And the IRS does not like entity changes before a sale and 1031. 

Does the property have to be officially under contract for the seller to change the status to pending?

I do foresee a problem with these tenants giving me a hard time with the changes that I am looking to make (rent increase, payment via check, late fees, and lease agreement). 

If you change the use to commercial, what will the rent be?