Aside from the lender problem, most deals I see don’t even cash flow when I eventually move out.

My wife and I are pretty committed to REI as our path to having enough to use our time for things better than money – maybe eventually in foreign missions.

In Dallas a high appreciating market, I want to build a 1400 sq ft 3/2/1 on my already developed lot, medium grade finishing carpet and tile mix, 80/20 brick and panel.

I'm paying tax on the interest because what else can I do since it's reported, if I don't eventually get my principal back it will be a loss I can either write off or carry forward. 

I have a friend who purchased an empty lot a few years ago, developed plans for around 200 apartments to be built, but didn't have the resources to cover the construction/interest costs until revenue could be generated. 

You can then develop your own plan not simply take random suggestions from strangers on line.

I am a developer and investor.

That, and developing a relationship with the lender or the rep you work with at that institution really helps.

@Josh Huber - many of the new construction developers I know of do not build to hold, they build to sell to an investor. 

Now if I am able to reduce the expenses to say 50%, by replacing resident management and staff with external property management, the property will cash flow nicely.However here lies the rub: in order to maintain the Section 8 subsidies there is apparently a budget which gets submitted to the Dept. of Housing and Urban Development (HUD), which accounts for all these expenses in their calculation of the Section 8 subsidies.