Since this opportunity came up, I've begun to take real estate more seriously as a path to financial freedom.

So basically in my mind this would not be a great financial move as we be accruing about 200k more in debt if we were to sell one house and take the cash from there and use it as a down payment.

Consult with a qualified tax advisor who understands these limitations and can help develop a comprehensive strategy aligned with your specific situation.Remember: The best tax planning looks beyond immediate deductions to your complete financial picture.

@Dona CardenasWhen I worked for a financial advisor, they used REITs as a way to distribute wealth for their clients in a strategic and tax advantaged way.

Prioritize your financial stability.

Another would be you are building other units next door/nearby and you can chalk this build up to the "learning curve".I didn't see a CFO on GLH or GLC's website, but I'm sure you have someone doing this type of financial analysis for your developments?

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

You hit the nail on the head...that's where the SFH to Duplex conversion gets financially unrealistic.

@David YoungRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Avoid deals in poor locations with high vacancy rates, overpriced properties, significant deferred maintenance, and unclear financials.