If you're considering renting to foreign exchange students, I would contact CSUN about this.

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?

@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.