I'm wondering if we should sell the 4 OOS houses in 2018 before capital expenditures start to hit and then roll the profits into a small apartment complex where we live.

It can save you a few $ on taxes, but it can be complex to work out with the timing and all.

For example, selling 3 duplexes could afford a down payment on a 20 unit complex.

In our model, we are assuming refinancing the first two properties after Year 1 by cashing out our initial $1M investment in each, and then reinvesting that $1M into another 30-40 unit complex at a ~$3M price.Basically: Year 1: Two properties at $1M eachYear 2: Refinance both properties, get initial $2M out of each property, and reinvest in another 2 like properties (4 properties at end of Year 2)Year 3: Refinance both recent properties, get initial $2M out of each property, and reinvest in another 2 like properties (6 properties at end of Year 3)Year 4: Refinance both recent properties, get initial $2M out of each property, and reinvest in another 2 like properties (8 properties at end of Year 4)Our model is to do this until Year 10. 

Now, if you're doing a more complex transaction like a subject 2 or owner financing strategy then that may require you to write out some terms so the seller can better visualize how they will benefit.  

Saying that apartment buildings get an 8-11% annual return is a very generalized statement.I'll assume that those numbers refer to a buy and hold investment strategy with apartment complexes and are taking in to account the annual return on investment through calculating net profit after all payments and expenses.

I'm looking for owners who might allow me and a staff member I have to observe their operation to learn. If any owner is a Homeless Provider with a government Per Diem Program in place.  Section 8 or 811 through HUD o...

Hopefully the owner rewarded the firm accordingly.How many units and is it customary for apartment management companies in your market to manage smaller complexes?  

Eventually I would like to own a large apartment complex, but for now I want to start by acquiring a single family rental to get exposure to property management and finding good deals.

Per FHA rules I need to provide my college transcript/diploma and 30 days of pay stubs to qualify.