As I think back, I had a very similar first year (or 10:)   No TK for me, but jumped into the deep end with a 10 unit mixed use as my 2nd investment yr 1.  

I need to do some deep research on non-recourse loans and also on how gains from debt owed by the 401k affect all things tax related.  

They did take a deep look on the cashflow history and my own income.

Lots of times a complete rebuild is "easier" than a deep rehab.

I am willing to make this a full-time job where I live in my property as I rehab it and I eat and breath the rehabbing process.I would love to hear your opinions and what you would do differently or what seems realistic with the number I stated.Regards,Pat

Since you are from around here I feel you offer a great perspective on this, do you see this area as good for investing in say rental properties or should I stay away from diving too deep and instead focus elsewhere? 

My partner says we had to build the design business because its the only way we've been able to make kind of deep connections and forge trusting relationships with partners, mentors, and investors!

If you want to get that deep into the analysis then I would suggest getting with an investment planner to see the numbers and separately researching the housing side of things to compare.  

A place like San Francisco which has a lot of security due to job diversity might be different than Detroit which has felt great economic pain due to their previous reliance on one major industry.This is just the beginning of a very complex conversation that can go deep into economics, but I hope this little bit of information helps you Armando !

Take a deep breath!