The lender and the appraiser will look at this, so heads up on that, make sure it can be rebuilt as-is under zoning.James

This is particularly true if they are Millennials, which is something I've written more about here:https://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rushPeople who are stuck in the Bay Area with nowhere local to invest have an opportunity to get in front of this migration and see some good appreciation and rent growth heading into the future. 

trying to wrap my head around a choice I have with a rental propertyI recently finish turning a house into legal duplex.new value is $430,000-450,000remaining mortgage is $173,000my mortgage is up for renewal On July bank is offering me 2.24 rate two year fix.cash flow with this new rate will give me about $1000 per month give/takeHowever, I am considering using the equity to invest in a new property.I can refinance with B lender at 4 % rate with $1000 lender fee and get $150,000  (cant refinance with bank)would likely allow me purchasing another property, turn it to legal duplex and get around 500$ cash flow per month.what is the best way to analyze the numbers and  compare those two  options? 

Depending on the reason and the end goal, I can probably give you some better direction.You hit the nail on the head in terms of not paying income tax from the properties.

Off the top of my head, Chase does 4 unit FHAs.

I was reading some quotes from legendary wise men and came across the saying that goes "two heads are better than one".

Somebody was bound to smack me over the head eventually right?

Brian Dalton those are a lot of great points, but i do want to focus on commercial multi family apartments that generate that residual income. starting off small at first then build my portfolio to bigger deals. but thats kind if where my head is. if any light to share or opinions on this please feel free to let ne know. thank you for your time

I appreciate your advice and let me know when you head over to New River. 

There are areas in Chicago where you can still get 12-15% or higher Cap Rate, but after looking at property tax, property rental laws, and the neighborhoods I headed another direction.