Having the opportunity to own my next home outright.

The IRS always views entity transfers like that as an opportunity to basis shift or a potential step transaction - either deliberately or accidental. 

I heard it's a lot of opportunity and big things can be done.

After you spent more money on repairs and improvements your cash on cash return may still be below 10%.Now compare this number with the opportunity of passive investing with a pool of other investors into the apartment building or commercial real estate.  

However, I'm wondering if I am missing an opportunity here, if anyone has knowledge of the potential pitfalls, or if there is anything that could be misconstrued into a legal issue.

They will both cash flow well, but don't really provide the opportunity to gain the equity to get my family to our long term goal of being financially free within the next 15 years. 

They will both cash flow well, but don't really provide the opportunity to gain the equity to get my family to our long term goal of being financially free within the next 15 years. 

In theory they spread out costs instead of having big ones possibly hit you at once.Other risks are burnout, running out of money (usually because of outside issues, personal issues, etc).For me, I've been thinking/evaluating a lot lately the 'opportunity cost' risk of stepping away from engineering and business career to do the real estate stuff. 

It sounds like it would be a great opportunity to buy low and make a profit, but is it worth it?

I am getting a number of opportunities to buy properties that I want, but simply dont have the money to jump on them because it is tied up in my other projects.