I am a smaller Main Street Type investor and have created/manufactured SFR notes as part of my fix-n-flip program for many years.

However, consider whether deferring recapture is worth it if you plan to hold the new property long-term and take additional depreciation.

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Many states have a "reciprocal license" program to simplify the process.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

After the new home is built, I plan to sell our primary house.

@Jason Mitchell two of the better Neighborhoods of Detroit's 183 that we've ranked.Are you planning to rent or flip these?

I believe this program is to help lower income families.

I plan to speak to my broker and it's probably a question for their lawyers, just wanting to check all my options before I choose a route

Used houses in the area sell anywhere from $75-125 a square foot.These are long term rentals that I do not plan to sell.I am reading the Rental Property Investing book and implementing the method that focuses on cash flow and that strategy states you need to have $300 cash flow per month, per property.