So I do not have a tax filing with the rental income on it yet.

Id be happy to break-even with the rental income if I get all of my invested capital back.

The company and others that he runs own nearly 100 properties across the city’s low-income neighborhoods, records show.

For your situation, one rental and just W2 Income, I would suggest finding a Tax Accountant, CPA or not.

Note: We do 50+ investment property loans a month and the most important thing I tell BUYERS of properties being sold as or soon to be STR is make sure you are paying the market price per square foot and do NOT buy based on income approach/CAP rate.

How do you finance the tear down do you add it to construction?

Some offer it as an additional rider for more money.

THEY ARE NOT LIMITED TO ONE PROPERTY.So, they can 1031 to 2 or more additional properties OR 1031 into a rental property plus a DST so that all the profits are used up in the exchange. 

I put the cash from the refi back into more mutlifamily units that produce more rental income. 

Additionally, most of the costs to make an asset ready for it's intended business use are capitalized and part of the cost of the asset.