The equity will count towards the down payment once you move into the construction loan.  

Ask him my hard questions, and count on his expertise.   

Small unit in small unit count is the most expensive development.  

(if you are a licensed GC or RE agent, this also can be counted towards experience) 

Note that if you are married filing joint, only the spouse who is qualifying for REPS is able to count their hours.Step 4: Apply the quantitative testsPer Section 469(c)(7)(B), in order to qualify for REPS, you must meet both of the tests below:750-Hour Test: If you materially participate in a real property trade or business, you must spend 750+ hours during the tax year.More Than Half Test: You must spend more than half of your personal service hours in the real property trade or business in which you materially participate.Step 5: Material participation in rental activities Just because you qualify for real estate professional status does not mean that your rental activities are automatically considered non-passive.

If you make enough money to qualify without counting any rents, no worries. 

Two things I would encourage you to ask yourself & ponder (essentially count the cost): 1.

I know there are some PMS lite solutions out there made for low unit count portfolios but honestly I used ical and excel until about 15 units. 

They also have a 'turn key' annuity asset that they can count on for consistent retirement income.

I've lost count.