Certainly more areas with lower property taxes.

., mortgage interest, taxes, repairs, depreciation) on Schedule E starting when the property is placed in service.

Basically a pre-nup agreement.

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

IRS definition of a dependent.To claim a child as a dependent, the child must be under 19 or under 24 if a student.

I have 2 options:- finance the construction pre-selling the apt, and take my profits (expected to be around 700K pre-tax); or- finance the construction with a 6-7%/year loan (collateral = my house), keep the 10 units, and once the building is completed in 24 months, rent them for circa 180K/ year gross.

I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this.

Taxes and requirements should be much lower for a LTR

I have been trying to get a note "deal" on Pre-REO for about a year. 

I'm looking for referrals for a custodian, tax attorney, and a CPA to set one up and advise me.