I was actually thinking about expanding into redlands eventually for student housing.  

We will be investing primarily in Pennsylvania, but will eventually expand to California and other parts of the country.  

While most Net Zero buildings are energy efficient, perhaps even highly so in comparison to minimum building code requirements, there is nothing requiring them to anywhere new the efficiency level of a Passivhaus   .... this is why you will see odd things like warehouses with large rooftop solar installations being able to claim Net Zero.On the other hand, Passivhaus sets three metrics which a building must meet to be certified as Passivhaus compliant:  The building must have a heating and cooling demand of not more than 15 kWh/m2 (4,755 BTU/sq ft; 5.017 MJ/sq ft) per year  and a peak heat load of 10 W/m2.Total primary energy consumption (energy for heating, hot water and electricity) must not be more than 120 kWh/m2 (38,040 BTU/sq ft; 40.13 MJ/sq ft) per yearThe building must not leak more air than 0.6 times the house volume per hour (n50 ≤ 0.6 / hour) at 50 Pa (0.0073 psi) as tested by a blower door.Ironically, the research and pilot projects which fuelled what eventually became the Passivhaus standard was carried out in Saskatchewan as a National Research Council (NRC) project in the 1970s (the house is still in use today) and a similar project (Minnesota?)

Is the initial negative cash flow ok to overlook knowing I can cover the difference AND that the deal will eventually lead to positive cash flow in excess of $100 each unit per month once I re-finance and move out of one of the units?

Wouldn't that eventually drive down rents?

I am looking to make a move into the Real Estate Investment industry by way of wholesaling to start and then eventually moving to flipping and building a portfolio of rentals.

I've set uupan appointment with a few more banks and I'll call more later, so eventually I'll find the financing I need.Does anyone know of any banks around western washington that offer 203k financing on separated duplexes?

It still cash flows, I have nothing out of pocket, and can eventually purchase the property for less than what the market value would be.Notes: I have enough cash to do a traditional financing on this, but would not.

I eventually want to rollover my stuff into a SD 401K to avoid the taxes.

My goal is to eventually gain financial freedom (teachers generally don't have this option if they only teach!)