I will have proof of income in 2019 due to a large amount of taxable income this year.

I can chose to pay the taxes on all my income and then invest personally with my taxable accounts.

@Nicholas Libertin I know someone who successfully purchased a multi-unit's LLC in Cuy county with no change in the taxable value or increase in taxes.

If we were to sell this property in 2019 we are under the impression that you will not owe capital gains on the profit if your taxable ordinary income is less than $77,200....?

If you converting pre-tax retirement funds into Roth this would be considered taxable event, be sure to consult with your CPA regarding tax consequences. 

(I think of it like this ... every dollar I don't spend on is a tool to be invested) I am building a taxable mutual fund portfolio (I think of this as my personal bank) that will buy properties 1 at a time.

I love being a private lender but the fact that it simply increases my taxable income makes me consider shifting some of my note portfolio to multi-family perhaps...You might find this discussion beneficial where similar question is raised: https://www.biggerpockets.com/forums/51/topics/604...Owning notes in your retirement account (especially self-directed Roth IRA or Roth Solo 401k) is ideal since you can have tax-free income for the rest of your life if you utilize one of these vehicles. 

You can also consider where you might retire, and taxability of retirement income as well as tuition benefits or yellow ribbon status.

Cash flow =/= taxable income. 

And you'll have to recapture depreciation.A partial 1031 would help you somewhat in that you can sell and take a portion of the sale as "boot" (taxable) while sheltering the rest of the gain in the 1031.