You just have to be careful with this because this could technically trigger the due on sale clause and the lender could call the note due in full.

If we can get our money invested back out in 12-18 months, we pull the trigger. 

However my advice is if you already have 2 properties there, you probably understand the market well enough to go ahead and pull the trigger on purchase # 3. 

I now have a better idea of what could be "behind" the use of this expressionLike you, this is not the only quirk trigger.

Some firms are compliance driven (file what needs to be filed and are more reactive) while others spend a lot of time on strategy. 

I'm also looking for do's and dont's, any insight or advice before I pull the trigger.

Hopefully, a compliance person will chime in @Bill F.

Can have all the knowledge in the world though but until its applied and repeated successfully leaves ya a little scared to pull the trigger haha. 

I think the key lies on this text from the above cited city doc, but I am not smart enough to interpret it:Code Compliance Consequences of a Second Complete and Independent Dwelling Unit Finding:If a second CIDU is found:1.

All I can say is if you believe in yourself and feel like you have the knowledge of the local market/area and either have the processes in place or know you will have the process in place then pull the trigger.