Ideas to make this workable for purchase with some cash flow?

@John Michael RobersonI agree with @Kory Reynolds: tax-wise, it is a workable plan, as long as you are hands-off, which in technical terms is known as failing material participation.I would caution however against focusing strictly on taxes.

Are either of these workable ideas or should I be looking into pulling equity out of our current rental and going the conventional mortgage route or some other financing option?

@Bob Stevens - I consider this markets I listed to have workable numbers for cash flow (provided you have enough of your own capital in the deal) and well positioned for appreciation.

@Scott Mac“It seems like these anomalies pop up from time to time, but they are more likely to be workable by someone who has a larger position in cash, a larger net worth, and experience in that asset type and asset class.”EXACTLY!  

My questions:* In general, does this strike you as a workable idea?

It's more workable when you aren't trying to get all you money back and are not needing any cashflow from it.

I feel that if both parties understand the risks; if real estate investing is their business, if both parties are sophisticated and experienced investors, and both decide the risks are worth taking, then subject to can be a workable tactic.  

I am just curious if the plan is workable and if there is anything I miss or need to rethink about.I realize that I don't know much about property management company, if I am going to invest in Texas.

It's great to see interest rates "level off" at something workable for hopefully all parties...the volatility over the last several years has been tricky to navigate...Chicago hasn't had as many market fluctuations which has been nice.