In addition, you need to make sure you have the proper paperwork and you set them up correctly.

My vision is to have an additional sources of income.

I'd need to do a master suite addition to be certain of exit values around $500k but the home previously had a swimming pool and it was where the addition would be.

The additional 14 people were not accounted for in the booking. 

Help them to decide whether to knock property down and rebuild and hold OR just do some additions completely gut and remodel and sell. 

If you decide to pass through, just make sure those additional net profits don’t move you into the next tax bracket.

You'll be a great addition to the forums with your experience!

No issues now.It degrades the hot water efficiency (read: more $$), but it is probably more efficient that having a 80 gal monster.Joe

The easiest and most tax efficient money you will 'make' is what you don't spend.Ask yourself where each purchase will put you in a year, 3 or 5. 

@Daniel Caraway a lot of times properties like that are grandfathered under existing zoning unless, it was an addition done without a permit or it's been vacant for a specified period of time.There are fairly explicit rules at the county level that govern zoning.