They will be in charge of finding our contractor to build the homes and will represent us in selling the home.

So they would probably take more funding when the property sells too?

Nothing in the area seems to be selling. 

Purchase price: $71,000 Sale price: $275,000 single family home bought and used as a long term rental. switched to STR and held for a few more years before selling to another investor What made you interested in investing in this type of deal?

It can also be safer to diversify your investment properties across the country.A very good source of local analysis, rereport.com.

Re-sells are having a hard time competing bc Hortons Lender is offering much lower interest rates plus $$$ toward upgrades/buydowns/closing costs.Anyways just thought I'd share what is going on in my market!

Either that or you sell, rinse, and repeat. 

Because as you said, the 1031 at its heart is used to sell and then buy new investment real estate. 

If you and I invest together and I sell out. 

Thanks Stuart.I don't think a "thesis" is necessary for real estate investing.Your mixing "thesis" with speculation and prediction IMO$1m in cash is retirement for someone that knows what they are doing in "low barrier" markets like you mention.Same can't be said for higher entry markets.Those that don't know real estate will loose no matter where or how they invest.Personally, I don't care about appreciation as I don't get out of bed unless I can net cashflow 20% net on a deal.For example, just bought a 6 unit in a B class area for $160,000.Currently occupied and renting for $3,000pm.Once minor rehab of $50,000 is completed, rents will be $4,500.I have an offer to sell as is for $250,000.ARV is $350,000.When interest rates go down, value will increase even further due to commercial lending being easier.No need for appreciation on such deals.I'll take them all day long over any appreciation potential.Again, just my opinion and each to their own.