It seems that investing in improvements while I still live in the home wouldn't be tax deductible.

Using the deferred tax as part of your reinvestment will do wonders for what you are able to buy.You get access to greater reinvestment potential, as well as not having to recapture any depreciation.If you do need access to some cash, you can either take some out as part of the closing (only the cash you take will be taxed.

@Kezia Edmonson, it's all about the valuations as @Jon Taylor mentioned.In your 1031 exchange you must purchase at least as much investment property as you sold in order to defer all tax. 

Whenever you plan on buying a property in the future, do not take the seller agent word for it always do your due diligence and make sure you get a certificate from the township that clearly states how many units are legally allowed in that building. 

@Tom HallAt 7% if you can I would pay it down as investing it net after tax gains may not get you the 7% you are paying - so it’s less riskDownside is you lose liquidity of that money as it’s tied in your propertyIf rates come down in future you can refinance and even take some of the cash out.Regarding your question are rates coming down, a lot of factors come into play but right now it does not appear there will be significant changes to rates over next 3-6 months.

Remember, many sellers are looking for solutions to problems, so your role is about providing a service as much as closing a sale.As you navigate the wholesaling process, keep in mind the importance of due diligence.

The cost of labor , materials , property taxes , inflation , interest rates  etc .

You’ll still need lots of due diligence and time closing your first investment, so why not get more units with similar effort?

If not on the MLS, they have to be about to be foreclosed on, way behind on their property tax or some situation that MAKES them HAVE TO sell.Same with rentals.

Additionally, there are Facebook groups where you can find some decent help, but there has to be quite a bit more due diligence and vetting with any and all contractors.