A lot of posts are stating why a PM is so great (and I agree), but that's not the question.A property in a D area is most likely going to require a lot more work from a PM who is going to get paid less for it due to the lower rent, versus a property in an A area that brings in more rent (more money to PM), but in general requires less work from the PM.

If I just isolated the question about student loans versus your mortgage, I would ask to clarify the following:Are you saying you have about $65,000 in equity at this point? 

Either way be sure to pay your accountant for a consultation to understand how you can minimize your taxes in the future versus just paying them to fill out this year's, like what to invest your income into, where to move money to, what receipts to save, etc.

I've also invested in Lancaster & Palmdale, and in your likely price range that may be your best bet ... you can get a single family home in a decent neighborhood or maybe even a duplex there for under $200k.

Ended up needing $147k cash to close versus 20% of $645k, $129k.

That would be $12,500 cash to you up front, $680 monthly cash flow ($40,800 after 5 years), plus the cost difference you owe versus how much you sell for.

Michael, Your best bet is to partner with a builder and take a cut of the building portion.  

YMMV.I bet there are some other folks on here that are more active than me can give you some good ballparks on what contractors are bidding labor at.

@Karsen Wynn Even if you find a part-time job, they are going to want a two year history of you having part time employment in order to give you credit for that income.Your best bet is going to be to go through a Non-Prime/Portfolio style loan where they are approving you like they would a commercial property - based on cash flow and some other metrics that do not require you to have income.

I think if they lived here in the US you probably follows the rules like you said, it passes to you with a stepped up basis but if they died in another country all bets are off, I have no clue.