Two big reasons... market in North Jersey seems expensive now, especially after the last round of tax reforms.

We know this works because everyone on the left screamed welfare reform in the 90's was going to create more homeless people but it actually resulted in more people getting jobs and becoming self-sufficient.The only thing I would offer poor people is opportunity.

There are a lot of cases where contracts are reformed to the intent of the makers. 

When you sell the property, you will pay capital gains tax, but capital gains tax will not be subject to SE tax.With that being said, the Tax Reform proposal might change the SE tax application for certain real estate investors - namely those that are considered in an active trade or business.

Plus...escape velocity...Episode 113 – Jay Papasan - Very practical slow and steady adviceEpisode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k Last but not least, I strongly recommend all the tax advice given by my fellow CPAs.Amanda HanBrandon HallTax Reform Update – Brandon Hall and Amanda Han Linda Weygant GuidesUltimate Beginners Guide Forum StickiesBP Calculators or spreadsheets uploaded by membersMy Favorite Books I have to say all of the BP books…right?

But in the interest of homeowners and landlords alike, I believe Texas needs property tax reform.

(There was one notable exception, a $100k of HELOC interest, but it has been killed by the tax reform.)You can deduct interest if the loan is used for one of these purposes:Buying or improving your personal residenceBuying income producing investments, like stocks or notesFunding business operationBuying business assets, including investment RENow let's play with your example. 

Thanks for the idea Bob, I am somewhat familiar with MLP's and it's a good consideration but I am worried about the Obama administration reforming the corporate tax code which would negatively affect MLP's overall.

The tax reform limited interest deductions for personal properties, not investment properties.

You may also want to wait until the tax reform frenzy has passed.