@axeIf the attorney who reviewed your insurance policy is, at a minimum, very knowledgeable about new construction and the potential problems that can be associated with it, it sounds like you're covered.

After assessing the condition of the apartments and the market rates in our town, we realized that we could potentially get $600-650/month or even more with some renovations.In an effort to bring the rents closer to market value, we spoke with these two tenants individually and proposed a slight increase.

He is giving you a free position and preventing a potentially more serious backup from being collected and that is a potential loss of value for him.3.

There is potential for a minor renovation that could increase rent to maybe $2,600 combined based on comps. 

You could have a higher earning potential with rent by the room.

-rent out your condo and find a new property in SD and house hack it (potentially difficult / burdensome)-BRRRR (very difficult - big initial outlay of cash and then you have to really nail it to get all your capital back)-BRRRR an STR (probably really difficult)-seller finance (very difficult to find a seller finance deal)but, i still think that buying a random property in the midwest and getting crushed with capex is difficult too

@Vinoth Amar I think Hutto has great potential in the future with its proximity to 130 and 79 and more importantly it sitting right next to a hot RoundRock market.

Trolley Square may be out of my price point but I am willing to take a risk on some properties that are on the Westside and potentially the east side as well due to pricing.

A couple of things1) If it is a secondary home, there are potential restrictions from a tax perspective if you live in the house for more than 14 days.2) losses may potentially be reported on schedule E instead of Schedule C.

Quote from @Charlie Shew: I have been trying to learn more about the self-directed IRA because my potential investment money is currently setting in a traditional IRA.