Charlie, i have learned to avoid exchanges, they really don't bring anythign to the table except higher costs, and longer times to get the collateral, if they can get it at all.

I am a finance professional currently, so I bring that mindset to the table, as well as a good eye, a passion for property improvement, and some funds.  

I feel like making an all cash offer gives me better position at the offer table.

So what are you bringing to the table in this situation? 

@Daniel DietzYour analysis is in the right direction, but not quite there.1) Determine the debt financing ratio - in this case .602) 60% of the gross income is then looked at by UDFI3) 60% of all deductible expenses are applied, so 60% of straight-line depreciation, 60% of the interest on the note, 60% of property taxes, etc.4) $1000 exemption applies5) The net amount after deductions and exemptions is then taxable to the IRA, and the trust tax table is used to determine the tax amount.Even if you have a negative UDFI liability, it can be worth filing the 990-T in case you can carry that loss forward to future years.We have a UDFI calculator on our website and if you PM me, I can send a link to you (BP does not want me posting that outside content on their forums).

So my current plan I am working with the builder on is a 1092sqft split foyer (this style b/c water table can get a little high on lot and I don't want to chance water issues in basement - plus there cheaper to build) with a 24x24 attached apartment that will almost make it look like a SFH with attached garage. 

I made some money selling items, but in the end had a LOT of things to deal with. 2 30 yard dumpsters, 2-3 dump runs filling a truck, and now have a couple tables, dressers, couch and such littering my storage trailer and at my house.

This leave you at $2,000-10,000 dollar profit which is still good but charge a upfront deposit of $2,000 and get $2,000 on the back end at the closing table that is $4,000 dollar profit plus a easy flip to the buyer. 

I totally agree with you, is that it's all in your mind.All you need to do is link up with seasoned individuals that already own bigger deals, bring value to the table and ride their coat tails to put your mind at ease.  

Pay them cash under the table?