Don't want to pay tax on selling the rentals I unfortunately don't think they actually want to utilize the 121 to sell their existing primary and then potentially buy another one-it sounds like the goal is to ultimately continue owing that initial home which I think makes this whole plan 5x more likely to be torn apart under audit because they're trying to end up with the same property they started with.  

That would be the minimum entry fee I would think.

Based on the fact that new construction is currently at a relatively low premium when compared to existing construction, I think this strategy might be a good option.

Do you think I should give up all my profit to just get the first deal done? 

Realtors, supposedly the experts) think is a going value at this point in time.

Curious to know what inventors think about the current market conditions?

I was thinking so too, the income still vastly exceeds the expenses anyway. 

you have to learn land entitlement. we identified a site today for hotel development that was an 18000 sq ft lot.

I think we have the best advantage because we are where many of the investors want to be and we can drive the neighborhoods ourselves and know where the transitioning areas are. 

Yep @Trent Reeve, I think I'll get one just like that, but through Amazon.