That will take you more than ten years to recoup that cost in cash flow although you should get a strong bump in value.

I do understand real estate is not a " passive" investment and does take hands on work with regards to even managing a the property manager.My initial thought was/is (given my current status) that the optimal strategy would be to look into turnkey properties to get started and once I move back into the states get into/invest in more areas of real estate investing.  

If you don't have savings to get more property, the leverage would only increase and the risk so why risk something when you are creating a strong foundation?

Most of the time what people are really chasing is time freedom and that can be achieved quicker by using a W2 and real estate and other investment strategies to build a strong foundation instead of rushing.

If you go to invest in the note space I strongly recommend you do a quick background check on the sponsor as there are numerous who have very questionable pasts.

While I secured the initial financing for the property, I have two other partners/groupings (a total of 6 people) that are contributing to the closing. 

Use this experience to work out the kinks and build a strong boots on the ground team.

And maybe in 20 years when the property sells it could be taxed differently, but not sure since it was initially a primary home. 

(The rental market is strong - these costs are largely due to a problem tenant who recently left the property.)Both properties are rented to Section 8 tenants and professionally managed.

Holding out for a strong or higher rent during this time can cost you money.