Be rid of the toilets, trash, liability and management headaches.5) Liquidity and Diversification: Diversify your capital into multiple real estate markets, REITS, stocks, bonds, multiple funds.

There is no additional "risk" on the note like a demand clause etc, but you have  extra expense in upfront one time costs and the pre-payment penalty that most programs are sold with if rates do drop as expected in the future.  

I've looked into roof stock as a possible option but I've heard nothing but negative reviews about them.   

With no comps in the area for new construction and the highest rehab selling for 205k, building enough at the onset, 4-6 new construction homes, may be the only way to start a neighborhood turn.The city is looking to increase density in the area and add anchor points in near the area to cater to future investment. 

The contract can be assigned to the LLC you create in the future.

You may want to find out what you can legally add to a future lease.

[Because after all that - you haven't paid off your primary anyway, and won't in the near future!]

Last thought (mainly for future readers), you may be talking about the 1 year FHA history if you have variable income.

I spent a year trying to find what I was looking for, wanting business planning and tax planning and legal assistance working cohesively to plot out my best future course.  

Audrey - Dave might disagree or add more context, but I think that predicting 5-year rent growth is a bit like forecasting the stock market 5 years from now.