Just means I have reviewed this with a lot of folks and have never discussed this distinction...    :/    )Bob, Continuing on your point about Cap Rate, I do understand that Cap rates vary by market, and are reflective of expected risk in a given market, but could you clarify how a Cap Rate is different from a "Return"?

PITI Reserves cannot be your down payment or cash to close, it must be distinct funds set aside to cover financial emergencies with your real estate empire.

The main building, however, need a lot of work to get to the standard of the rest of the neighborhood.This duplex consist in two very long units almost identical and it’s layout is very outdated with the kitchen at one end of the apartment and the living room at the other end (with outside doors on both ends), not to mention that even though it was advertised, by the previous owner as a 2 bedroom it consist in to 4 distinct rooms (not all of them with the corespondent closet) but it has been used like a 4bed apartment with roommates, living in each of the room.

What is the key distinction between a 1031 and and OZ. 

Her are the problems with the way you describe it...and the parts that are already a working part of it:Good Part 1 - The Lease and the Option are two distinctly different agreements with to completed different people, unrelated, and not connected,...even though the two people you have these two agreements with, have the same SS#. 

lawyer and broker do two distinctly different things in a lawyer closing state.realtor will do your contract but also make sure you have your DD time lines and follow them.. help with home inspection and whats normal and what is not.. things like that.lawyer simply does the closing .. they are not at the home inspection or working with your mortgage lender other than in a closing capacity.. its not necessary to have an agent and if its a FSBO some agents will work on a flat fee to run the paper work not a % fee.

@Austin Largusa The property and the lease/tenant are two distinct items...so, unless you are dealing with a property owned by the housing authority or their subsidiary, built with tax credits or receiving tax credits, it's not a section 8 property...and section 8 is really a mis-used term...it's actually called a Housing Choice Voucher and they are used across many populations from at risk of homelessness, to corrections re-entry...to house veterans, etc.

I know a lot of real estate agents I like as people but they have no idea how to invest profitably and I wouldn't consider using them.This is the kind of distinction I mean, this property below is in Phoenix but it could be anywhere in California, Texas or anywhere else.Average Turnkey Cash Flow Per Door In PhoenixMetro Area No Bank Financing Neededhttps://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area 

Apart from the distinctions already mentioned, one must also consider the time that you're spending without having any income from the property.

Each had their own distinct niche.