If I do this, will I be taxed on the money I make over the course of the year, as opposed to being taxed on the entirety of a note up front? 

What I can't seem to determine is the rental potential as in will I be able to keep it consistently occupied in one area as opposed to the other.

At the end of the day, you will need to pick 1-2 things and excel at them as opposed to trying to learn everything about the industry.

If you purchase via an IRA (as opposed to a 401k), you will need to open an IRA account at a specialty trust company which allows for investments in real estate.

But if I understand what you said about not having the first investment forever, it sounds as if fix and flip is the better strategy for this market as a oppose to buy and hold renting, yet I 've also heard that this is supposed to be a good to decent cashflow market.

Vacancies will be longer in A as opposed to B with a greater monthly loss. 

This will likely help you exit profitably or close to it without having to put more money in to it... of course you will not be recovering your money until the term is complete.The advantage of the above idea would be to allow an investor to own/control a property with limited out of pocket expense as opposed to purchasing the home for all cash and funding the entire rehab.

The same investment seeking 12% requires a lot more work, some more risk, and more time to put together a portfolio of notes.For someone who wants to enter the note BUSINESS as opposed to just investing their own funds in notes, the learning curve, time, effort and knowledge needed is much greater.

Will this make any difference in our tax return besides using a different form as opposed to not having EIN?

Now I’m not so much opposed to class D properties, but more concerned about class D neighborhoods.