FHA is easier to qualify for and allows for higher debt to income.If you have not spoken to your lender already, you should also just look into the HomeStyle Renovation loan.

Eliminate debt, establish a budget, and save.

Or sell using the 1031 exchange along with a partial 121 primary residence exemption There is a way you could take advantage of the 121 primary residence exclusion allowing you to take the first $250k of the gain tax free ($500k if married) and qualify for a 1031 exchange.Say you purchase a property as your primary residence (house hack extra rooms for extra income) and lived there for two years while stationed there.

That means creating a clear budget, forecasting cash flow, and maintaining a detailed financial model that tracks both the current and future performance of your portfolio.Tax Optimization & Risk ManagementBeyond financial clarity, strategic tax planning and risk management are essential to safeguard and grow your real estate investments.

You'll get pretty good depreciation when it comes time to do the taxes.

No personal income or tax returns are required.

Note that the diagram doesn't consider tax implications—that's another important factor you'll need to include in your decision.

Out of the 5 deals I am LP in, Rod's are giving me the top 2 returns (primarily due to fixed debt) while others, not so much but their returns do get accrued

I can save a fair bit on state tax and rent as I'm currently living in California. 

@Felicia NituIn addition if you actually want to realize that value, you need to count another 5% for selling costs, and the taxes from the sale.Assuming a 20% capital gains tax, your total ROI on the above scenario would be about 12%, even with the numbers you were using.