You aren't necessarily building that much equity (cost of building exceeds the value) but it is a third option that is a hybrid.Another factor is location.

Am I more likely to be able to add $50k or $100k of value above cost in a high Cost RE market or a low cost RE market?  

Either way, the property will cash flow like crazy once my unit is rented.I have enough capital to get into a bigger property with low money down and am seriously considering a triplex or fourplex for the next one.Here’s the issue: My lender (local bank) says I need to be fully moved out and have a lease in place before they’ll proceed with my loan.

The current status of the market is low end rentals land lords that let the houses look like crap. 

How much does something like that cost over there?

Plenty of posts here on BP discussing why that is not always the best option and just ends up costing you more money.

Cost overruns were tremendous.

Lenders often require 30-40% down.Cash flow considerations – Since all expenses must be paid from your IRA, maintain liquidity to cover unexpected costs like repairs and vacancies.Rental properties vs. commercial deals – Residential rentals and commercial properties can both be great options, but keep in mind management complexity and income stability.Generally speaking, stay compliant – Avoid prohibited transactions, such as personally guaranteeing a loan, living in or personally managing a property, or transacting with disqualified persons (yourself, spouse, ascendants, or descendants).Diversify your portfolio – While syndications and real estate are great, consider mixing in other alternative assets like private lending, tax liens, or even notes for additional risk management.Work with the right custodian – Make sure your SDIRA custodian is well-versed in alternative investments and has experience handling syndications and non-recourse financing.If you’re looking for specific lenders who offer non-recourse loans, I’d be happy to point you in the right direction.

Save the low rate: Keep your current loan and focus on building savings for the next down payment through budgeting or a side hustle.2.

If you ever want to get into a tenant nightmare of costly potential litigation become a landlord, have the ac go out in Phoenix in July, and inform the tenant that you just don’t have the funds to replace it!.