how does builders participation really work?

[Andy Quesada]

hello all, I am trying to purchase a 2nd property and have a couple of strategies I can implement but i am truly at a crossroads . Currently I have the ability to purchase a single family residence for a price that won't cash flow unless I add an in-law suit of sorts. Since the properties are in the 310-380k  and this given growing area's rents are 2k-2.3k a month . I am a builder in this area and I know I can add attached/detached in law suit to any properties in this area which would allow me to cash flow afterwards. The real question is I have someone selling me a property at 350K with a 20K builders participation credit and I will be able to use my real estate license for help with the down payment, is this a good deal ? I am struggling to decide whether to get into this home or narrow down to a property that is $310k and can pay for the mortgage right out of the gate?