Thanks,  The state of PA does not recognize that a 1031 exchange defers capital gains tax, so you will be paying PA income tax on the gains if you do a 1031 exchange.

I work in partnership with an internationally recognized Architect also based in Toronto who previously lived in San-Francisco and is registered in-state and previously worked for SOM before doing her post graduate in Architecture at Harvard.

Here is my suggestions (since thats obviously what you are trolling for)1) Read my last post2) Recognize that you ARE the number #1 Scenario.

That will surely change as more and more people recognize the value of an ADU/mother-in-law suite. 

As a secondary issue, I assume that you are taking enough money out of the company to have a reasonable lifestyle; what's preventing your lender from recognizing this income?  

While I recognize the housing market can be like a roller coaster, I expect to hold onto it for ten to forty years - whatever makes sense. 

Recognize San Diego rents are higher than most  (virtually all) markets).   

I was 100% looking at the upside and not truly recognizing all the management work that will be required.

@Kate Lee If you're a newer investor or a first time buyer I'd recognize there are opportunities in every market (even crazy California).

Before you tell the county that you have a duplex and you want to split the utilities, confirm that they recognize it as a duplex and it is not an illegal conversion.