Ideally, I'd like to have each asset purchased under a separate entity to reduce risk exposure but for now, we only have a duplex in mind. 

I've never actually wanted to do this before, but now I'm considering it.Does making a partial payoff on the principal of a standard fix/flip hard money loan(12 months interest only with balloon, no prepayment) actually reduce the monthly interest payment?

I am always looking to reduce my tax burden, if theoretically I could reduce my tax liability to zero, that would make me 30% more profitable at the bottom line. 

Without the borrower willing to participate in a short sale, you have No chance of getting a reduced pay off, assuming this is a traditional lender/mtg.

This is GENIUS. 56% ROI, wow... money saved is money earned. 

You can reduce that risk with serious research on your market; studying market cycles, the attitude of the city regarding growth, master plans, jobs expected or know to be coming to the area.

You didn’t say if you able earning a wage while in college.

And unsecured funds into your personal account could earn a decline on your loan.  

However, lenders construct second mortgages as either home equity lines-of-credit (HELOCs) or shorter term, higher interest rate, full disbursement mortgages for homes.When selling a home, a second mortgage, regardless of the homeowner's use of the funds, reduces the seller's cash received at the closing of the sale.

Half Bath: This is basically the same as the bathroom category except reduced down to vanity, faucet, flooring/tile, setting material, toilet/connections, light fixtures and Misc.