., The half you lived in will be tax free to the limits of the sec 121 exclusion as everyone has said. 

--A requirement to insure the STR through a limited set of STR-specific insurers... discussed ad nauseum elsewhere on BP.

The GRM for the city limits varies between 60-85.

I know I missed out on quite a few properties by limiting my scope so much.

But the property would NOT rent at 1% of purchase price, unless I bought a crack house and flipped the hell out of it (perhaps wise, but I know my limits)Due to travel time to work, I'd HAVE to purchase near Stockton: Lodi, Manteca, perhaps Elk Grove.

She has filed application with LTB, and hearing is arranged in March. 

Silver Sands is amazing, such a beautiful park.Madison, Old Saybrook, and Mystic come up often, all beautiful, but limited options.   

I have a rental and am currently accepting applications.

With your limited construction experience, I'd either bring on a construction manager or as I mentioned (and prefer) include administration services with your chosen architect. 

Split the down payment and make two smaller down payments on two separate houses, a year apart (I think that's the limitation on FHA loans).