As someone who tracks their loan closing data, I see that currently about 65% of my business is some kind of cash out for investors. 

Hey @Brandon Schaar, reach out to @Darren Danowitz to help you get on the right track with assisting you and your wife to purchase your first house.

In San Francisco, this choice is taken out of your hands and is instead a determination made from and by the Planning department.From an Investment POV, you are absolutely correct that combining the lower and the ground floor units is the best option to preserve your ability to perform a fast track condo conversion and generate the most equity in the shortest amount of time.

My clients are using QBO and I just have to track all financials for them.I have clients that are mixed with Rental and Flips.It all depends if you expect a flip to last longer than 1 year, chances are you going to put them all in Balance Sheet Items. 

You're definitely on the right track and live in a great real estate market to be successful!  

Question 1) does the depreciation recapture follow thru the 1032 exchange where you still keep track 50k worth of recapture?

You’re on the right track, but make sure to consult with your CPA to confirm your plan aligns with your situation.

My opinion would be to serve a non-renewal as well after you track them down.

Additionally, cultivating a track record of successful projects can help negotiate better terms over time and foster trust with private money lenders.

Here's an example of what I'm talking about coming up on the November Ballot --> "Justice for Renters Act".