A 1031 exchange could be a potential tool, but there are some key hurdles to be aware of.1. 1031 Exchange RequirementsFor a property to qualify for a 1031 exchange, it must have been held for investment or business purposes—not as a primary residence.

Drew, sounds like a solid opportunity with a lot of potential, but definitely some big hurdles to clear upfront.

Hey Greg,With $750k to work with, you're in a great spot to make a serious move towards financial freedom through real estate.

You Can Only Have 35 Non-Accredited InvestorsRule 506(b) allows an unlimited number of accredited investors but restricts you to only 35 non-accredited investors.However, there’s a catch:Non-accredited investors must be financially sophisticated.They must have enough experience to evaluate the investment risks.From the SEC:“Securities may not be sold to more than 35 non-accredited investors… [who] must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment.”If you’re planning to include non-accredited investors, make sure they qualify—or you could be violating SEC rules.3.

You'll have to ditch the seller financing and have skin in the game.Freddie also requires that borrowers meet minimum financial strength requirements (IE - liquid assets equal to 9 month's P&I [bare minimum], net worth greater than or equal to loan amount [bare minimum], FICO>=680). 

As an out of state investor, I would love to connect and potentially have a property manager in my team that experience in Section 8 rental. 

My main motivation to eagerly learn is to achieve financial freedom and hopefully one day be able to retire my mom.  

Then you will be stuck with a potential rehab project.

Consulting a tax professional or financial advisor familiar with these rules would be a wise step before making any decisions.

I was working as a financial advisor for Merrill Lynch.