Are you planning on being an agent and helping other people buy/sell houses?

These used to be the "hood" areas of Pasadena and they are still to some extent… but they are selling for $850k+ (the small homes that is… ) You can easily go to North West Pasadena and buy a home for $750k that is only 900 sq ft and add 1000 sq ft and an ADU and make that home's value jump between $1.4 to $1.6 (or higher in some cases).

@Matthew Alonso we have a townhome that is tenant occupied through next May that we're looking to sell to fund a new build.

I just purchased my most recent property last month by selling one of my inland single family homes for a duplex closer to the beach. 

I've even seen distressed multi-families in some of the better neighborhoods sell to investors who convert them back to single families. 

Make sure you stay educated on your market, what is selling for how much with what features.

A conservative view here: These capital improvements can be considered your increase in basis in the property, and when you go to sell you will have a larger gain.

I would make sure you stay connect with what is selling in your area and for how much.

Then pick their brains about your local market.I would review listings on line on a regular basis to get a better gauge on what properties are selling for and what seems to be in demand.

Sell your primary residence and house hack the 4 plex.