Depreciation on a low cost multi unit...

[Benjamin Paul]

I bought a single family two years ago for 70k with the intention to live in flip.

In the process of renovating I realized it could become a three unit and began reading about the tax benefits of rental real estate and depreciation. 

After repair and conversion the property with be worth about 325k in todays market and rent for between 3 and 4k per month. However i have done most of the work myself and will have a cost basis of less than 150k (of which one third will be land).

i would love to have this as a rental but fear the numbers will not be worth the taxes caused by the low depreciation I have available vs the fair market value (though my income is under 40k). Especially as I could sell outright and pay no tax through the primary residence exemption.

Is there a way to reset the cost basis? Sale to another entity and finance? Cost segregation? Front load depreciation and then 1031 exchange?