If your existing home is very rentable  and you think the future would not change your decision to keep it as a rental and is not prohibited by local zoning. 

@Sean RolandIt is prohibited to lend money to yourself.

Public nuisance prohibited; penalty; fines; cash bond.

A: In a statement issued by the Housing Authority of Cook County in connection with the consideration by the Cook County Board of whether to prohibit discrimination based upon a prospective tenant participating in a housing choice voucher program the Housing Authority of Cook County stated as follows: “Owners still have the ability to screen all applicants for suitability for tenancy, applying their screening criteria – criminal background checks, credit checks, home visits, landlord references, etc. – equitably amongst all applicants.

The City of East Cleveland and its known issues are prohibiting new growth heading into their direction for the time being.  

They prohibit more than one FHA mortgage at a time with a few exceptions. 

I have read through the complete IRS guide to rental properties and can't find anything that specifically prohibits this plan from working.

This would mean the only prohibitive factor for turnkey scalability is the down payment factor?

We had to walk away from a fabulous house which was "unofficially" made into a 2 family years back, and current zoning regs prohibited making it a legal 2 family house.

Hello Adam,It is my opinion and not legal adivce that what is an is not a Security for federal law is governed by the the howey test:investment of money due toan expectation of profits arising froma common enterprisewhich depends solely on the efforts of a promoter or third partyThe structure you propose triggers all four prongs therefore IS a security.As you rightly point out its probably cost prohibitive to take this down the syndication path.The best way in this case is to just create a member managed llc with all decision voted on by the members.