We want to invest in buy and hold properties, but we feel that pursuing this strategy will better benefit our long-term goal due to the potential cash flow and appreciation of a property (if we buy right).

Too many people pay $30k for a guru to tell them everything, but if you can "sacrifice" $10-$20k of potential profit, you will have real-world experience, relationships AND the ability to go to private money or bank financing with and actual track record.

The realtor says the seller has "potential" renters who will sign a 1 year lease at a price higher than what I am seeing  with the rent comps. 

I see huge potential in REI with a lot of hard work, both of which I’m very excited to dive into.I’m in my 33rd year of life and recently left the commercial maritime world in May to continue pursuing my career as a freelance Captain.My wife to be (in 11 days 3hrs and 4 minutes 37 seconds) and I are looking to start our portfolio with our first property together to be a multi-family in which we live in one of the units for 1-2 years as house hackers and then continue to build with BRRR.

The major drawbacks include potentially being stuck with undervalued rent (at least for the duration of the lease), and potentially high rehab costs to update once they move out.

Sure, you can classify yourself as a real estate professional or setup a property management component and pay yourself a salary that could convert that passive income to earned income, but it generally does not make sound financial sense to do so.The gig work could potentially support a Solo 401k.  

This is a public forum that can be googled, and correct terminology is critical for potential legal issues.  

@Shane M.The IRA will have potential exposure to UBIT.  

The three areas you have chosen have good rental potential and section 8 may be a good option. 

Want to avoid potential pitfalls in the overall journey before you even get started.2 - love the idea of water falling all your profits and cash flow into future purchases and down payments.