Unless apartments are just not as marketable, then a multifamily building is likely the most efficient for construction expense, operating expense, and rent/SF.With a building of only 12 units, I doubt you'll see any time-based advantage by phasing in duplexes.

We’ll remember this number as we move on to the next step.Factor In deductible expensesYes, you can factor expenses into the equation.

They are more expensive so great if you have to have it, not good if you can do something else. 

But I can still use an FHA loan and then transfer the property for $1 to obtain maximum protections of an LLC with maximum leverage.They are told this can trigger due on sale clause and will still will be paying transfer taxes based on the properties assessed value + deed prep, recording and misc. title expenses.

Each time you refi bridge loan, dscr, etc you have loan fees adding to your expenses.  

My CPA says STR "A" can only deduct expenses for STR property "A", and only up to income level.

You could offer to do month by month to see how it goes for a set period of time (eg 3 months) and then if it goes well and she's comfortable with her expenses, to do a lease at that point.

There are no economies of scale to build one property on one lot either so it ends up being more expensive for the builder which means they have to sell at a higher price in order to make their desired profit and if your market doesnt support this, then builder loses money.

The reason you have to obtain this special type of financing is because the tax code provisions (IRC 4975) do not allow you to personally guarantee debt that your IRA or Solo 401k takes on. 2) It was referenced above UBIT, which is a special tax on the portion of the after expenses and depreciation, that is attributed to the debt financed percentage of the property.

Lakewood is a nicer area with a lot of multi-family rentals, but they're more on the expensive side.