From what I understand, having rentals in a Roth IRA would be smart because all rental profit at retirement would essentially be tax free.

Second, note buying was profitable during the downturn. 

I would suggest looking at:The Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider

The profitability of the home would not matter, the tax deduction would more than make up for it.  

Profit, 1031 exchange into a larger deal.The reason for this price is I am shopping on what I can put down for a down-payment WITH a partner. 

I think the reason a lot of investors go high end in single family homes could be because you only have one unit, so the profit margins are squeezed, in order to turn a nice profit, you must command higher rents.

And in a 1031 exchange Boot is considered all profit first. 

Profits will vary from 12k to 20k.

if we sell full price at 650k  5% is  32,500  for a net of 617,500 -  420 k   put net profit in the 200k range which is 30% or so on Gross which in my world is basically un heard of.. ( West coast new construction that is)  .... either way.. great project thanks for pinging in on the thread..

HML facilities are pretty cut and dry.but the borrowing against our notes was when I was in the Land and Timber business.. we would log a track  sell it to a home owner on contract but it would take a year or two for them to go through planning get their house designed etc.. and then when construction loan was ready we would get taken out.Generally when we did these the logs paid for the dirt so we owned the property free and clear and would sell the parcels for 150 to 300k ( our profit)  but could not run our machine collecting 2k a month in a payment so we would borrow 50% against them at our bank still positive cash flow and had the money to buy another timber track.. as these were generally all cash purchases..I suppose those that do the brrr with owner financing could run the same model.. ???