You might be referring to income / expenses that are reflected by cash.Cash you receive from rentsExpenses that you pay out such as insurance, interest, taxes, etc.You may not have included depreciation expense which would bring your taxable income down further.It may be possible that the negative taxable income would bring your taxable income down.

@Cathy Fitzwilliam Initial cashflow is not easy in San Diego, the higher rates make it that much more difficult but it is certainly possible with value add deals.  

Im just trying to create weath fast as possible now so i can gain more time!

@Richard Benjamin Wilhite, @Bill B.makes some good points about loan terms and the strict identification rules for a 1031 exchange.I would add from a tax mitigation perspective that buying the largest property possible will give you the greatest amount of cost segregation possibility and at the lowest cost since it would be one study rather than several. 

This is appealing as I want to spread my cash reserve as much as possible. 20 percent down each time will really limit my progress.  

As a mortgage broker, I shop my clients' loan to get them the best possible loan and the least fees while helping them to reach their investment goals.

Here's some STR companies in the area that can possibly help you out...Go Wander Home Desired StaysThe Sosi

I’ve been exploring strategies like the BRRRR and am keen to hear about others' experiences.I’m here to learn, share ideas, and contribute wherever possible.

For example, I know a lady in my local market that is very successful in the land business and has developed a niche that cashflows very nicely, without a lot of stress, as she puts it though I can't imagine how that is possible. 

I found this fact sheet which seems to indicate it would be possible to evict the rent stabilised tenants so long as they haven't been living there for more than 15 years or are older than 62 or disabled: https://hcr.ny.gov/system/files/documents/2020/10/fact-sheet...