I'd recommend pushing density to 3 or 4 they all finance the same. we picked 3 because of the 35' height allowance in our area. here is a rendering to help paint the picture. our target appraisal value is 550k on the first few and pushing them to more than 600k as we sell some or keep them but if you are the only one building multifamily it's important to highlight the importance of appraisal and selling or disposing of some assets to create comparable to be used. our market has very little 2-4 units built because of economies of scale we are the only builder doing this style and we control the full process and it is a high barrier to entry where we are at. we are able to build at a lower cost now than almost buying a duplex because they are so small. each one is 668 sq ft total of 2004 sq ft. 

If someone is working with a lower balance of funds like I am, than I'm more likely to prefer cashflow so that I can continue to afford the property as well as my life style.If I had some disposable income that was in excess of what I need to live on, than I'm more inclined to look forward towards appreciation because I would have enough wealth to take the hit now for the bigger payment in the future. 

When they say 1% each for acquisition, management, and disposal, what is that 1% of?

Investors - I have 25+ years of public accounting experience in the real estate space at your disposal.

Make sure you leave that new LLC as a disregarded entity, or if you bring investors on with you, make sure it’s taxed as a partnership (subject to Subchapter K).The only way to mitigate cap gains would be if the property appraised very close to its net tax basis.The other strategy at your disposal is to dissolve the S-Corp in the same year (though you really need to be in-line with your CPA on this one)… you should have more tax basis post- deemed sale, and that basis would help you achieve a capital loss on dissolution of your corporation.Talk to your CPA my friend!!

Gains through crypto felt uncertain to me but still had a draw, so I decided I wouldn't use more than 5% of my disposable income to gamble (whether on leveraged index funds like QLD or crypto).

There is so much material at your disposal for doing due diligence into a neighborhood online.

If you're investing blind then you have a multiple of disposable income or have no fear of loss.

See "Renting Part of Property" in IRS Publication 527:https://www.irs.gov/publications/p527#en_US_2023_publink1000... this situation, you have not disposed of Property A.

How much disposable income do you have right now?