However, if you plan on using the equity through a cash out refinance to invest in something else, this is another story - you can use leverage do buy more properties and scale you portfolio.

We plan on using the VA loan and to buy down points, at least 1 percentage point worth.We’ve considered a house at a lower cost (250-350k), but they generally need some work (kitchen/bathroom renovations).

So that begs the question, do any of you have an exit plan?

My concern is what he will do when he gets released, if the scenario plays as is being painted.The illegal occupier believes the system is broken, that he has rights over the land as a human being and told me he is willing to die for these rights.The police said they will have backup as they are concerned with the situation.

Once you have systems in place and have developed standard operating procedures and a plan for management you will be fine.

Enough for a downpayment on a small multi-unit.I think I understand I can roll this capital to a SDIRA, but for a buy and hold plan I won't get depreciation if property is held in SDIRA.

Thanks for you quick reply. i rally appreciate it .I am planning to amend my 2022 return , and that's why asking this question .

Am planning to acquire more in same neighborhood and just wanted to know if my experience was the exception or the rule, going by the list @Chris Dawson published.

Once you own here and a few years go buy, you'll feel incredibly blessed to have your own property both in terms of cash flow and appreciation.There is a saying of owning real estate here:  "It's the bay area retirement plan". 

Have a clear plan.