Subsequently they offer financing on the properties through approved seller's into Fannie Mae.

That takes it out of the estate and subsequent taxes and is there for the wife/kids to use and possibly avoid having to sell my real estate to pay taxes and allow them to keep it for long term income after I "shuffle off".

That way each subsequent loan with have it's own time-to-repayment clock ticking on it.I would work on my REI with a 'five year or less' exit strategy - even if only to finance out as a way to pay back the 401K loan (they typically have a five year maximum term) although I would aim for producing liquid cash rather that equity initially so that the REI can begin to fund itself sooner and reduce the dependence on 401K borrowing.

On subsequent units, we went further, changing the kitchen flooring, changing the kitchen counter top, changing cabinet knobs (a small thing, but very noticeable), and changing sinks, faucets, and toilet if needed.

An effective strategy can be to obtain (at a discount) an assignment of the 2nd mortgage holders rights, and similarly to obtain a subsequent assignment of the 3rd lien. 

What I do remember is that it was subsequently listed for $62,900 for close to a year.  

While that's not your goal having to constantly find the subsequent properties meet emotional needs can be restrictive.

Over the next year we would probably build enough cash to pay off the remaining credit on the variable loan, and would subsequently be on traditional mortgages for 4.875 - 5.1%.I am happy to try and provide any other info that would allow you guys to weigh in.Thanks so much in advance for this newbie question!

It also requires for you to close on a property (not necessarily the property that was identified 90 days subsequent to the close of the old property) with a 180 days.

I know a lot of people make very informed decisions (and subsequently a lot of money) in RE, I just really worry about those people who sign up for an RE website and see post after post about how easy/simple/better it is to invest in RE than traditional securities.