I'd suggest starting where you're at today and defining some milestones that will ultimately lead you to that $100K/year of income.  

If your looking for relatively cheap ($10per linear ft) counter tops, I would definately suggest it.  

The key would be to define the landlord-tenant relationship in clear terms and treat her the same as you would any other tenant.My dentist and I are good friends.

And could you define OOC for me?  

You need to define your exit strategy, and let that guide you.

Nice is defined by better schools, so watch the school boundaries.You'll be commuting to Vancouver?  

ok we can definately connect and network 

Its always best to define you goals first, then choose a strategy to help you meet them.

.† Final value defined as = [Down Payment] + [total cashflow] + [principal paydown]*The ROR formula breaks down when you have negative cashflow since you can't pay the negative delta along the way with the equity you only realize after selling (or refinancing).

The most important part of the transaction, in my opinion, is that the 1031 Exchange must put the investor into a better position (how ever they define that) than they were before.