I want to work with partners who understand the value of a contract projects everyone involved and serves as the safety net when our memories fail us.

Duplexes can be build for around $85-100/ft2, assuming middle grade finishes, this does not include land or soft costs.  3-4 unit building would be a decent amount more on a $/ft2 basis due to the use of different code and the increased fire & safety systems. 

This means prioritizing paying off mortgage on the home we live in. 

I don't need the cash flow now, and whether I'll need it then isn't the point...the goal is to have this safety net that I know that no matter what happens to me that income will be there.The "lend hard money" route might not be the best route for you if it takes up a significant portion of your liquidity. 

He purchases a distressed property for $60K, rehabs it for $30K, and puts the remaining $10K away for a safety net. 

If so, why and how do you prioritize both?

Be aware and jump on it with safety net. 

I’d be cautious dealing in that type of property even if you had experience, a nice cash reserve as a safety net and a bank lined up which it doesn’t sound like you do.

I am a addict when it comes to deals and look several times a day in my local market and missed some great deals how ever in my market I would suggest a duplex because in my city everyone works at the heart of it and the land here is just used up so its prime rentals either way I go home value has shot up as there is just no more land to build on unless you go out of town so SFH are overly priced so its a ruff cash flow, for me   I will be doing a duplex for following reasons 1 more doors = more safety if a moves out b is still helping to cover my payment 2 its still 1 roof 3 I control the value of said property if I really make it diamonds = raising the rent to the cap it controls the value of said property.

When finally installing the fire alarm system, the inspector still won't lift the cease order because of the CO issue (and after hearing each time, it was all about people's safety).