That's itIf I could go back I would have spent a little more time focusing my capital on acquiring smaller multi family and understanding the power of a 1031 exchange.

@Karla Slyngstad A Delaware Statutory Trust qualifies for an exchange, and most have debt at or near 50%.In your situation, and speaking in general terms, a $400k equity investment would include a $400k debt position, satisfying $800k in an exchange.

You can use a 1031 exchange to defer taxes, but you also face pressure to locate and close on another transaction.

We are looking at purchasing 80% of the property by doing a 1031 Exchange by selling another parcel of vacant land.

Good luck with managing keys, drilling out locks, exchanging lock sets on tenant turnover,  trying to enter a unit when tenant is not present, etc.

Will i have to worry about being taxed or will I need a 1031 exchange?

Is there anyone attempting to work with their local housing agency or housing authority to receive a property tax exemption in exchange for agreeing to rent your single family house based on some sort of income restriction?

@Jonathan SmithYou haven't mentioned the complete relationship you have with the "investor".Is the investor lending you money in exchange for interest?

I'd wager that you might be able to get good returns out of there, but on the other hand, I'd be careful of any rent control laws that might kill your return.

@Dan WhiteThe unique/interesting thing with partnerships that I like is that everything is negotiable.On the most recent Biggerpockets podcast, the guest mentioned starting out as a wholesaler and then bringing a deal to a flipper in exchange for a profit and to be showed how to do a successful flip.