I decided this because fair market value for rent on the entire house is roughly $3,000, which would make his portion of the "rent", $1500.

However, I do feel confident in my ability to do a good portion of renovations on my own and I am pretty good at making the interior of a house look great.

Also keep in mind that section 8 doesn't always pay ALL of the rent, and the tenant's sometimes have to pay a portion, so you will have to collect their portion.

Some clients have chosen to pay taxes on a portion of the 1031 proceeds so that they can use it for renovation costs.Work with someone who has a lot of experience dealing with 1031 exchanges.

If it’s the taxable gain you are concerned about, you can temporarily defer that portion of the sale through 2026 by investing in a Qualified Opportunity Zone fund.  

If you do a download, you will see that only a small portion of what you enter is downloadable.

In theory my only costs would be purchase of the lot + associated fees, taxes, and engineering services (which I could do a portion of on my own time). 

Regardless, it'll be vital to build your core-4 if you plan to invest out of state, I'd recommend reading this article by David Greene: https://www.biggerpockets.com/blog/core-four-real-estate-tea... 

Maybe it's worth finding a cash-flowing asset that you can invest into that doesn't require a new mortgage on your part -- something syndicated or a NNN TIC property where you're just buying into a portion of the property and its existing debt load. 

Part 2 - Non-Dutch Repayment Schedule: The key difference between Dutch and Non-Dutch is that with a non-Dutch repayment schedule, the borrower pays monthly interest based on the portion of the loan that has been drawn.