Depending on ARV, you might be able to finance 100% of the construction so long as you are not over 65-70% of the ARV.

The property is in a solid area where Neighborhood Scout puts it at the highest rating for appreciation, predicting 40% appreciation over the next 3 years, and we'd look to refi or do a HELOC in 3-5 years to realize that gain, and I'd probably buy them out with my portion at that time.

But ya have to make some educated prognostications in life.Add this to the information your processing - What your talking about doing is eliminating around $4000 or interest expense (which is deductible anyway so really could be a real impact of eliminating $2800 or so) of debt in exchange for paying over $10K in capital gains tax (don't forget possible state gains tax as well).  

Plus licensing is crazy expensive.There are issues all over the place here and getting anything to cash flow is a tough row to hoe.

At Rent to Retirement, we've been helping investors navigate these opportunities for over a decade, and we're here to guide you too.

Let the money stack up until you either want to buy another SFH and do the same thing, or decide to spend it on a Ferrari.Just my 2 cents.I can’t argue.  

I buy all over DFW for large investor, and I always enjoy talking shop.

I currently work with investors building and diversifying their portfolios with Single-family homes over the midsouth/midwest, and I would love to connect with you and share some insight on the turn-key world and swap investing goals.

Thank you all who responded, I plan on spending some time driving the neighborhood and talking to anyone at the local coffee shop who will talk to me. 

Hey @Brett Baker, generally, any place with a great water view or directly on the water will bring more revenue.Of course profitability will all be based on purchase price and prevailing nightly rates in the area.If you find a cool 2/2 or 3/2 right on the water with a great view for 1.5m or a 2/2 or 3/2 house a block away for 600k, then I would look at the house over the condo.