Are we required to pay FICA tax on the deferred income? 

You can use this property to hedge any others that you add that may only cover themselves, or require supplement until they are paid off.HOWEVER, if you have decided that your goal is to use Real Estate as a stepping stone to build wealth by upgrading the property you hold each time (condo to house, house to 4-plex, 4-plex to 8 unit, etc) then I think you are right to sell now while you think the property is at the top of it's appreciation.It will be hard for anyone on BP to tell you what to do as we don't know your goal.You are right. 

Since you’re building from the ground up, a hard money loan can be a great option because traditional banks tend to be slow and have stricter requirements for new construction.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

@Amir PortalFort Worth (Southside): Affordable entry points with growing rental demand due to development and school proximity.Arlington: A solid mix of price points and strong rental potential, especially near UT Arlington or entertainment districts.Focus on areas with rising population growth, job opportunities, and low vacancy rates.

Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy).

Department of Housing and Urban Development (HUD) and Bankrate, the big perks of an FHA home loan are:Lower Down Payments: They typically require a smaller down payment than conventional loans, sometimes as low as 3.5% of the home’s purchase price.Lower Credit Score Requirements: They’re designed to help buyers with credit scores that might not qualify for conventional financing.

Zoning and Permits: Make sure to check the zoning laws and permit requirements for building an ADU in the area. 4.

I suspect if someone contests could be longer.I also think once you go to mediation this will get worked out pretty quick mediators if you get a good one do a nice job putting these deals together..

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow.