As I write this I am thinking it makes pretty good sense to use the line of credit and preserve cash to have a downpayment on another property.

For instance, very few custodians will allow an IRA to hold partnership interests, but I have a contact at one and this will be key for my business plan and structure for wealth preservation and building.Talk to you soon.Joe

If I promise a 1031, I may be forced to take a deal I really shouldn't just so I can preserve the 1031, and investors wil be mad later.

Maybe leverage less at 65-70% LTV to preserve the cash-flow. 

That way you have tons of applicants and can select the best ones to rent to.People already making lots of cash tend to be interested in equity growth and capital preservation FIRST, tax write down, and cash flow is lower down on the list.People with more limited income tend to buy the low end rentals with limited capital to get started. if you buy 3 crappy rentals for 20k down each just for the sake of diversity then you have 3 losers.

If some other position/entity forecloses, the first position is unaffected and preserved and they get to foreclose so, they get nothing in the junior lien foreclosure.

@Francois Guerrier some people are not in wealth building mode but rather wealth preservation.

In the meantime, I’d park the money in an investment account that is about 40/60 stocks/bonds - mainly to preserve capital with a smidgeon of growth.

Holding costs and costs to secure and preserve are included IIRC. 

Right now I am not doing anymore RE deal but focus in preservation by keeping my capital in US short-term bonds which will benefit as the Fed cut rates down to 0 in the next 1-2 years.