Equity is far more difficult to raise and generally more expensive than debt, so if if you have access to equity with the return profile expectations you noted, you have a great advantage over most. 

So incurring the fewest expenses is the cheapest exit plan.There is no tax advantage to refinancing the property first - in fact, the refi will often force the taxing authority to reassess the value of the property - which would likely remove any tax grandfathering you may have - raising your taxes.There is no advantage to doing a two step process like you mention.Randy

The problem I see is the masses have not understood the advantage of purchasing a duplex.As far a Lennar is considered an entry level builder, I don't see that their neighborhoods in general have very good price appreciation, unless they are in a unique area where the location is exceptional.I think that prices are falling, and that you should be able to find a deal, the I-35 Corridor from  San Antonio to Austin is a very hot area.Here is an example of a property that was listed for $342,000, and the list price is down to $300,000, with a price drop of $20,000 on 7/29. 1261 Stone Rim Loop, Buda, Texas 78610, If you need any comps or info, just let me know, I'm a licensed Broker in Texas, and I have MLS access across the state.Also, I'm not sure if you know, but you can split your 1031 exchange and purchase multiple properties instead of just 1 property. 

@Dan H.Thanks for the feedback. 100% agree with you as I don't want to encourage these tenants to take advantage of the landlord.

Working with an independent broker who is your advocate as opposed to the company's advocate is a huge advantage, especially when it comes to claims situations. 

I thought the main advantage would be the ability to micro-manage your portfolio, customizing your vendor list according to each property and coordinating with a dedicated leasing agent.

It only ever makes sense in context of someone looking to take advantage of the other, seriously. 

I'm interested in learning more about the dis/advantages between buying it as a foreigner and buying it directly as someone who earns a US income.

If section 8 is your play, you should take advantage and look for higher end areas so you can get the most out of more expensive properties that have more to appreciate.

Everyone is always trying to find where their advantage is, and I think you have yours with your experience, day job and family connections.