Investing is like running, you look down when you are climbing the hills and put one foot in front of the other.

I found the deal through Redfin and was comparing price per square foot ratios throughout town.

In this post, I’ll go over my first-hand experience with how not fully understanding the 1031 Exchange and long-term capital gains hurt my bottom line.In May 2015, I bought an empty lot in Stockton, CA, a 12,000 square foot empty land parcel for $45K. 11 months later, I sold the land for $65K in April 2016.While I’m glad to have generated $20K in profit or ~50% gain in such a short time, I later learned two tax laws that I should have kept in mind that would have helped retain more of my earnings:Tax Law 1: 1031 Exchange.

What should I expect to pay for a 1400 square foot home?

Also be mindful of any local regulations on how many unrelated occupants in one domicile are permitted.I just looked up my cities unrelated roomer policy:three or more units150 sq. ft. for the first occupant100 sq. ft. for each additional occupantAND400 cubic feet of sleeping area per adult200 cubic feet of sleeping area per childA 10 ft. by 10 ft. bedroom, with a standard eight-foot ceiling, accommodates two (2) adults.

This will at least give you a foot in the door while you narrow down your criteria for REI.

what are some tips to help me get started on the right foot?

In hindsight I should have set my foot down, stuck with my gut and what the numbers showed.

Storage sheds that are converted to living space must then conform to Zoning for the Main House or ADU setbacks, and may need to match the architectural style of the house (every jurisdiction is different), as well as Building Code, including correct footings or slab for flood areas, hurricane straps for winds, current requirements for septic tanks/fields (common even in Pinellas County), and the egress (one 36" door) and bedroom window emergency escape requirements. 

I can email it to you if you'd like.Lease Termination / AddendumDate: _______________________Property Address: XXXXXXThis agreement is between XXXXXX, XXXXXXX, and CT Property Management (on behalf of owner)This agreement indicates that:1- XXXXXXXX is relieved of any and all requirements on the lease agreement dated 1/26/20, effective 8/31/20. 2- Tenant XXXXXXX has agreed to continue to reside at the unit and assumes all responsibilities related to said unit, including the overall condition of the property effective 9/1/20.3- The lease agreement dated 1/26/20 is terminated effective 8/31/20.__________________________________________________________ Tenant __________________________________________________________ Tenant  __________________________________________________________ Landlord