Additionally, I would like to attempt to do the process Owner/Builder with subcontracting work out as well as doing some of the work I'm comfortable with (I have some experience with bathroom & kitchen remodeling an am not new to the construction industry).

But I would think it could/would certainly work out if the numbers look good.And yeah, I don't think you'd have to discount the space due to less SF, or not much anyway.

.- Workout - At least 15 minutes.- Pray - 10+ minutes.Life is a marathon.

@KT Fissore I would work out a deal with you in TX and do it for 5%

Our exchange didn't work out and they returned the proceeds via wire as soon as our 180 days were up.

How did the cash flow work out?

If you don’t mind a little more advice…when I’m running projections like this, I like to use the worst case scenario and if the numbers don’t work out in that scenario, I usually pass on the deal.

You will need to work out a mutually-agreeable solution. 

I agree with @Ashish Acharya if you're interested in reinvesting the proceeds into another investment property and your goal is to minimize your tax liability a 1031 would work out well for you.

I don't have enough details to know whether it's a good move for you, but I think my numbers work out better when I'm the lead.