The "blind-pool" nature allows some REITs to invest in whatever they want whenever they want. 

If your all-in cost to build for below market value and you are able to place quality tenants, then you should be able to leverage the completed project in a way that allows you to pull out some of your initial investment tax deferred to fund future investments while keeping the rental income and future appreciation.I am a CPA by day and advise many developers on tax strategies.

@Paul Sassin Where I live the towns only allow the owners of the property to be billed for water and sewer.

The property is where my home is also located and I allowed her to put her home on the side corner.

Maybe house-hack by renting other rooms in your space or a separate entrance to the basement (which would allow you to short-term rent that space).

One of the requirement that is the most challenging to obtain is a letter from the HOA saying that STR (less than 180 days) is allowed. 

Even if you are doing the management yourself having it billed into the partnership allows for simple accounting at the end of the year.  

It’s not a get rich quick thing but it builds up solid equity and allows me to take out a certain amount of cash to fund the next deal or whatever comes next.

But with all major repairs done and a cash flow of $4000/month (with healthy allowances for maintenance and cap ex) we hope to start taking a monthly cash out in a year or so....

I'm wondering if there are any lenders that would still allow 1 year tax returns.