A tidy profit, plus confidence to tackle the next project solo.On the topic of self-directed IRAs: While they’re fantastic for gaining experience and diversifying into real estate over time, they can feel restrictive if your main goal is scaling quickly.Here’s what I’d focus on:Using Equity Wisely: A HELOC or cash-out refinance could unlock funds to pursue a flip or duplex without touching your 401(k).Partnering Smartly: Your realtor friend sounds like a great resource.

It's not that challenging to get above a 10% return in real estate with all of the profit levers (cash flow, appreciation, mortgage paydown, tax benefits, leverage)?

The Importance of Honesty and Ethics in Private Money LendingAs a private money broker, I am in business to earn a living, but profit should never come at the expense of honesty and integrity.

Let's see: You sell one property, and to avoid paying cap gains tax, you then reinvest those profits within 45 days into a larger "like kind" property.

In general, any time you have profit or depreciation recapture that would cause a tax. 

Interest only loans allows them to get a goal profit of $500-$600 per month per property.3) Each acquisition would require 20-25% down at an 80-100K purchase price. 4) Closing costs, and the Eric Spofford turn-key transaction fee of 10K would be in addition to the down payment and were not included for the purposes of calculating the cash-on-cash return.

When you add rehab costs and effort, holding costs, and selling cost there is not much profit. 

You may be profitable, but I'd prefer to avoid the possibility of having to do unnecessary repairs or not holding my tenants accountable for damage when I know their actions might have caused any unforeseen damage. 

Sell,  pay the taxes, and give them their $1,000 plus half the after tax profits?

Likely not allowed in the lease and if the landlord were to allow it they will partner with you and take a good chunk of the profits.