Many 506b deals are pitched to new students including ones that are failing and the students have no knowledge in this industry to understand what is being presented.

And your net worth will thank you.If you still want to go ahead, you'd be better off buying a house than an apartment because, while the value of the building itself will go to 0, you'll still have the value of the land, bearing in mind that the land might actually lose value too given the depopulation and the yen depreciation.Sorry if I'm pooping a party but make sure you understand what you're getting into (which you're already doing by asking the forum) and then make the decision that's right for you according to your objectives.

A solid property management team (or maybe multiple PMs if your portfolio is large enough) is a must for out of state investing.

Not questioning your judgement/assessment, just trying to understand the situation to best advise you. 

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

It's a great way to talk through your plans and goals for real estate with people that actually understand! 

You don't need to know everything to get started; you need a foundation to build on, and the rest will come through experience and then refining your education.You can build a basic understanding of investing in 3-6 months.

Once you narrow it down, start with small jobs to test their reliability and quality before giving them bigger projects.Building a solid network takes time, but having dependable people on call is a lifesaver for your rentals.

If I am understanding you correctly, the employee can only really "donate" 60% of their AGI and would be taxed on the remaining 40%?

Life started moving fast as many probably can understand and I completely fell of track.