If you cover yourself, choose a qualified tenant, and be fair all around, everything should work out ok.

Some HML's charge usury and don't know that they can be legally liable for it.All of this is of course subject to the advice of a qualified attorney, which is where I learned of it.

what rehab skills do you have that you won't have to pay someone else for?

The first issue that jumped out at me is that you have to have the intent to hold for investment in order to qualify for 1031 exchange treatment.

Now there are learned negotiating/people skills that can help you lead people in any situation.

Although there is such an animal as a "reverse" 1031 I don't think what you're describing would qualify.

How you hold isn't going to impact your taxes (generally) and may make your tax filing more complex, and seller financing is going to make it complex enough.If I were starting out now I "might" set up LLCs and use one LLC for every 3 properties, but I might just do it the way I've always done it.Good luck and welcome aboard.Depending on your state law you may find that outright sales, with low down and easy qualifying, are easier to do than L/Ps.all cash

if you're eager to start, but lacking skills and experience, you can make up for it with a good agent (but you're paying for it).

When he purchased the home he put about 5% down and was able to qualify for 95% financing.

Needed some work, so I partnered with my brother (I had the money, he's got the construction skills) and bought the house.