Tax Strategy for first deal

[Mario Nacev]

Hello,

I am looking to build a 4 Plex in PA.

I am in the preliminary phase of planning and my questions relate to entity structure, taxes, and finances 

Background:

Land Cost $10K 

Build Cost $200K

Appraised Value at completion $350K

Estimated Sale price (Sale to occur after 2 years of living in property as primary residence) $450K

Income - I have 215K of W2 (Mostly) and 1099 income that I would like to offset the taxes on.

Questions: 

Overall Tax Strategy - 

1) What entity to purchase land under (Buying Cash)

2) At time of sale should I rely on 1031 exchange or does a primary residence exclusion make more sense?

3) This will be a house hack I will live in one unit as a primary residence. I plan on renting the other 3. Does the fact that I'm building the house effect whether or not the rental income and eventual sale income will be passive? I know builders are considered active, but since its my primary residence would it be considered passive?

4) What Entity structure would help most to reduce the taxes on my Income thru depreciation etc?

5) I want to finance the construction cost ($200K) the lower the down payment needed the better, Does this limit me in entity options how so?

6) Multi Entity Options - In relation to controlling the capital gains at sale; does it make sense for me to take a home building loan in my name, and hire a self owned llc to build the home? Does the bank care who you hire? Are there any self dealing rules in this regard? The $ paid to the LLC for the build would be fair market value and passed to me via a K1 (The $200K is a discounted value based on building it myself.)

7) If you think this would make a great case study episode for the podcast please let the appropriate people know =)