Reno Scenerio Off Market Purchase Price - $185k ARV = $315-335kReno - $55-65kHolding - $10kClosing both ends - $25k= $335 , $315-$285 =$30-50k gain  As-IS Scenario Purchase - $185kSale Price on MLS :$225- $235kClosing both ends - $20kHolding - $4k= $235 - $209 =$16-$26k gainIn both scenerios I’ll be 1031ing it into a new investment.

If you don’t want to spend money I’m pretty sure you could get someone to grade the surrounding dirt and add some gutters for your $5k discount and gain you will have added value and come out ahead.

This strategy showcases how buying directly from motivated sellers, renovating strategically, and selling retail can yield substantial financial gains in a relatively short time frame.

Or sell using the 1031 exchange along with a partial 121 primary residence exemption There is a way you could take advantage of the 121 primary residence exclusion allowing you to take the first $250k of the gain tax free ($500k if married) and qualify for a 1031 exchange.Say you purchase a property as your primary residence (house hack extra rooms for extra income) and lived there for two years while stationed there.

I am committed to gaining knowledge and understanding the ins and outs of the industry.

I understand there are some other factors I glossed over like gaining the approval of the first seller to switch collateral and the lien in second position, gaining approval of the second seller to put a second position lien below the big loan, and scheduling the sale of the first property to coincide with the purchase of the second property.

So there might not be enough gain to need a 1031 exchange.If there is enough gain to justify the 1031 exchange then simply treat your replacement property as you would any other investment like @Daniel Osman said. 

However, this also means walking away from future appreciation gains and potential rent increases.As for a HELOC on an investment property, yes, it’s possible, but terms are typically less favorable than primary residence HELOCs.

I’m here to gain insight into the investment side of things, and connect with people already familiar.

It’s a great reminder that showing up consistently and putting in the work is what truly builds long-term success—whether in real estate, construction, or any other industry.Your experience proves how valuable it is to gain knowledge from the ground up.