I agree, if i have done my math right, i should be able to buy 4-5 houses with the 6th house having a 250k mortgage due to the 1031 exchange rules to avoid the boot.

I would think it would at least be worth talking over with the underwriters; for someone who doesn't have a load of cash sitting around, I think it is a viable option, and as I showed in the original post, the math still works out to save money monthly... seems like a win-win to me.

Go to college and get a firm background in math and finance and - most importantly - whatever interests you as a human being.

Real estate agent math is like toilet paper math. 27 mega rolls equals 732 regular rolls. 

I'm with you @Noah Laker , I think there is huge potential in college towns and mid-to-large cities so long as you do your homework on the legal side.

Do the math, if they will not reduce, then move on, it's only a thousand bux.

Do the math.

Quote from @Dennis Dougherty: I think your math is wrong.The current home will rent for $3,500.

Would have to do the math backwards by figuring out the build cost and potential value when the project is completed .

Looking at the math problem, when you sell your second home you will net (820 minus 480) $340K.