We didn't make any profits last year so shouldn't be too hard right?

Condos are rarely good investments anyway; the HOA fees eat most of the profits. 

From what I understand, having rentals in a Roth IRA would be smart because all rental profit at retirement would essentially be tax free.

Second, note buying was profitable during the downturn. 

I would suggest looking at:The Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider

The profitability of the home would not matter, the tax deduction would more than make up for it.  

Profit, 1031 exchange into a larger deal.The reason for this price is I am shopping on what I can put down for a down-payment WITH a partner. 

I think the reason a lot of investors go high end in single family homes could be because you only have one unit, so the profit margins are squeezed, in order to turn a nice profit, you must command higher rents.

And in a 1031 exchange Boot is considered all profit first. 

I should also note that I do have my real estate license, but I honestly don't have the time to use it, but man, I would save a lot of money if I did :D Target Profit Margin $18,000Actual Profit Margin $17,500Financing used: 80% of home and renovations covered by bank with an interest only construction loan.