The only word of caution is that if you pull out more cash than your taxable gain (profit) then the 1031 Exchange would not provide you with any benefit.

However, I get what you're trying to do in order to be able to just print off a balance sheet to show your Net Worth.I do disagree with your CPA about putting in an offsetting liability as this still will not get you what you're looking for.Instead, I would create a separate asset called "After Purchase Appreciation of Asset" and debit that for the increased value.I would then create an Other Expense (Not an Operating Expense) and I would call it "Non - Taxable/Non Deductible Transactions". 

Their taxable value total on the local tax district site is $315k.

If your taxable income is under $157,500 (single) or $315,000 (married filing jointly), you are eligible for a 20% reduction of your income from pass-through entities.

The main goal of this is to ultimately reduce personal taxable income, acquire company owned assets, and build a nest egg of liquidity to invest in property. 

Yes you will need jobs that show sufficient taxable income in order to get an FHA loan.

So if you have total income - W2 plus rental PLUS Capital Gains plus any other taxable income, then your Capital Gain tax bracket is 0% IF it is a long term hold. 

The silver lining may be that the taxable loss may offset other income but in many scenarios, the offset is limited.

But my net TAXABLE income is -$1k ($4k operating income - $5k depreciation).Because my net taxable income from my rental is negative, I have a passive loss.

This means your mortgage-qualifying income is $40k higher than your taxable income.