Hi @Chris Garnes,I am an investor who has self-funded rehabs and also a licensed mortgage broker.

The tax benefits refer to the tax deductions from mortgage interest and property tax.The returns mainly rely on appreciation, and the cash flow only improves in the last few years, also depending on securing the 5% refinance rate.I've learned a lot from this forum, but as I start to operate on my own, I'm still not completely confident.

But then my cash flow won't be high, and when trying to get another property my DTI won't be great because 75% of the rent won't meet the mortgage.

Just remember if you want to purchase another one you will need to refinance at an 80% LTV as you can only have one CMHC insured mortgage. 

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

So are you saying the Mortgage One deal would be the way to go? 

Best of luck 👍🏻 @Justin This is almost perfect advice but you do need 3.5% down with an FHA mortgage.

Class C/D neighborhoods with both Section 8 and private payer tenants.

They will pay a higher mortgage payment because they are not trying to cash flow.

If you are selling for 1M after closing costs you could purchase two 500k properties in your exchange and own one cash and a mortgage on the second.