Consult a CPA or real estate attorney to understand tax implications, build a reserve fund for unexpected costs, and research local regulations to ensure a smooth and profitable transition into rental property ownership.Good luck!

My first question would be is this profitable?

Normally a lot of people will just flip a property and split the profits 50/50 but even tasks can be split.

Basically just putting a step in the middle of a disallowed transaction that is really only there with no actual profit/business/clean motive except tax avoidance...is not valid. 

Yearly increasing costs will, in time, eat up any profit they have per unit.

It's stopping me from scaling to a much larger portfolio leveraged versus a smaller paid off portfolio.  

Most larger communities will have a Homebuilders Association, i would start networking to find a builder that can finance the construction. 

@Kenny BaoTypically, larger properties are sourced through brokers.

@Ajay Sharma can be quite profitable but can also be a lot of work.

When they do, you can refinance to a lower rate.Dealing with current high interest rates (about 7% on 01/27/2025) you have the following choices:A larger down paymentAccept a negative cash flowBuy down the interest rateCombine and balance all three to get an acceptable cash flow today.