Many folks that come to us we end up having to amend prior tax returns because they were done wrong and its always frustrating for the client to see how much money they missed out on and how they now have to wait to get it. 

The time to ask, even on BP, is prior to the event to minimize tax exposure.  

The high speed rail has some approval: The high-speed rail station in Merced is environmentally cleared to be located adjacent to State Route (SR) 99 and the Union Pacific Railroad (UPPR) line on SR 59 – also known as Martin Luther King Jr.

Buildings located within three miles of a coastline must first be inspected at 25 years, and every 10 years thereafter.'   

Additionally, while you should ask questions, as Justin points out, most well written documents have some form of indemnification that basically says the investor is relying SOLELY on the signed documents and any communication prior to that is not considered valid.  

You like the location and amenities the property offers.3.

Without knowing the specifics of (1) your personal situation and (2) the particular property market conditions for the property market your property is located in and (3) the condition of your house, etc. it’s impossible for anyone to provide meaningful advice concerning whether or not to entertain this offer.Many states have standard contracts and procedures which have all but eliminated the need for an attorney when the sale of real property is done utilizing the “usual” methods of financing and ownership transfer.  

So, that means moving those items which are typically located in the basement here to somewhere higher up in the house which isn't cheap but is doable.

Also the resorts amenities will come into play, and your homes location to the amenities.

I don't want to refi out of the VA loan on my current house because I have a 2.875% loan and would presumably have to start paying PMI then also.Any feedback about the VA loan issues or my strategy in general would be greatly appreciated- I've been educating myself for a while now, but am also a total newbie in actually taking any (real estate) investing actions.Thanks,AugustOh, in case it helps to know, I'm located in the Midwest, so I could easily find a suitable 3 bedroom in a suitable area for under $250K and it probably would not cashflow at purchase in a B- or nicer area (maybe roughly break even), but shouldn't require much of a special deal to be able to within a few years.