Yes, real estate entails some cost, but also provides greater returns at lower levels of risk in exchange for these costs.

If rates don’t go down, I will 1031 exchange so I can utilize my equity.

Assuming both properties are/would be LTRs, these would be netted together on Schedule E, which would flow through to Schedule 1 and/or Form 8582.You'd also want to be aware of the potential for depreciation recapture when going to sell the property if you're not using a tax-deferred exchange.

During the next set of emails I have exchanged with them they always said the transfer was in process.

I'm eager to dive into wholesaling and can't wait to learn and exchange ideas with all of you.

When you do a 1031 exchange, you have to replace the value of the debt as well.

Here are a couple of ideas that might help:1031 Exchange: This is usually for investment properties, not your primary home.

Once I return I have been thinking of  doing a 1031 Exchange to maybe get out of single family homes and into a property with multiple doors.  

In exchange for being in a landlord friendly state like Texas, where it's easier to evict...it's harder to collect on unsecured debt.

Current Situation:One house owned by self: 600,000 (has small mortgage)House owned by LLC: 350,000 (does not have mortgage)New purchase made by self using 1031 exchange from LLC: 600,000 (mortgage around 300K)