Account Closed, I don't think this is a good plan at all.Besides losing 20% of your income, there are a number of other disadvantages:You can't force appreciation with a 4-unit.You're at the mercy of the fickle and emotional residential market.Based on that market the property may be worth significantly less than as a 5-unit commercial, instantly losing you money and impacting your ability to get a new loan. 

Doing BRRRR doesn’t have its separate tax impact.

@Michael Peralta I would not advise you to invest your cash if one deal will impact you that much.

May seem trivial but I'm noticing that little things can make a big impact on day to day operations, especially for repetitive tasks.

Also interesting in this question, I wonder if anyone here has done any research on this program...How long has it been around, how reputibale it is, and mainly what are the impacts.

How the bill impacts an investor is really a function of their goals.

I'm very risk adverse and feel more confident in my first purchase given it's flexibility. 

In addition, his principal paydown is about $1200/month, so his net impact to his net worth is $300/month before factoring in tax deductions or appreciation. 

If you are risk adverse real estate, (especially out of state) is not for you.

There have been a couple studies on the impact of IPOs and the results don't suggest a 50% or 100% increase.