I think it's the NOI and cap rate but will defer to the more experienced folks to answer you.

Went went and drove the property over the weekend and it’s fully rented, below market rents and doesn’t appear to have any extreme deferred maintenance.

I would defer to experts and wait for their input.

I wouldn't be able to defer taxes for selling the house to use for construction right?

I once had a furnace die , A refrigerator completely fail ,an expensive turnover out of the blue , the insurance sent me a cancellation notice and a tenant died in the unit .. all this right in a row .i had done a bunch of deferred maintenance prior to these events so I had very low reserves left .

Moreover, I note that if you are looking to do a mega backdoor roth the plan not only needs to allow for Roth contributions but also voluntary after-tax contributions.If you invest your Solo 401k funds in real estate all of the returns of such investment must flow back to the Solo 401k and will do so on a tax-deferred basis - this is not earned income which you would report on your personal taxes and then defer part to a 401k.Please see the following additional considerations regarding setting up a Solo 401k to invest in real estate.1.

Equity appreciation(2) Inflation hedge(3) Leverage(4) Mortgage amortization(5) Tax deductions and or deference(6) Rental IncomeHolding a mortgage note has the following benefits(1) Interest income (2’ Remote possibility of foreclosing on property and ending up with increased equity.What makes notes attractive is that by engaging in hard money lending, or purchasing notes at a discount to unpaid balance, investors can obtain a rate of return significantly greater than the ongoing rate of return obtained by investing in real estate equity.

@Frank Schaefer, Think of it this way - In order to defer all tax in a 1031 you must do two things.1.

Between that, bona fide STR insurance, costs of maintenance/deferred cost of maintenance, utilities, etc.

In your investing experience, do you think it is a stronger position to have a large amount of cash early on, or to save that equity and defer taxes?