With the cash flow number and the potential equity gain every year you can calculate your estimated return on equity - my hunch is that with $500k in equity it will not be great return.Another thing to keep in mind is that if you have lived in the current house for at least 2 of the last 5 years and it has appreciated a lot while you have owned it then you can sell with little to no capital gains (there is a limit that you may be pushing with that much equity).For those reasons I would probably consider options that involve selling.

The beauty about real estate investing is that theres almost endless possibilities you just have to network with the right people and understand the risk of each deal.

I'd find a mortgage broker who understands your strategy well enough to advise on products designed to help you scale. 

A good rule of thumb is this:  Be careful and fully understand the risks of "getting in bed with the government". 

So that I understand, you did a 1031 exchange and bought a house that cost $70k? 

To understand how they pushed their numbers so much into their favor, we have to actually look at their numbers.

As an overseas fund, working with a bank or lender that understands international investors and can accommodate your specific needs is key.There are asset-based loans or hard money lenders that could potentially offer financing based solely on the value of the property, rather than relying on personal guarantees.

To answer your question, You would need to get an attorney involved and just issue a mortgage and note along with having a will that your daughter would inherit this.

The tenant isn't "happy" about the construction but understands that it's my property to do as I wish.Has anyone had experience with performing construction on a property that a tenant resides in?

Buying multifamily is not about what the seller did but understanding what you can do and how much it will cost you do to it, then determining if the financial reward is worth the effort to undertake it.