@Sam Kay, Using a 1031 exchange from a property with higher risk or actual repair costs into a property with less risk of capital costs can be very helpful to you. 

That's a great way to put it.Hi Guys,Yes, that will be the move, I already know and have sketch of 2 ways to do it, I didn't want to get into a crazy rehab now, till I make sure my contractor is a team player and he will be able to do so, my idea is to add SF and create a master sweet, let's see if the numbers work fist, this is something I will do after the property is stabilized, I think I can get my capital back and some more with the 3/1 layout now, I will keep you posted!

Often times, folks have little to zero income, little to zero capital, and want me to sell them the dream of purchasing real estate with no money and no job.

I personally hate rental arbitrage (no appreciation or depreciation), but it's a great way to get started if you don't have much capital to work with. 

But will you get a stepped up basis or owe 100% of the capital gains?

I'm currently looking to build my social media presence to start connecting with real estate investors, which hopefully leads to having committed investors willing to invest capital in a property with me.

Do you use private capital to purchase homes?

I have an unplanned capital gain over several decades due to a property interest I inherited.

Plus after the 2 years, you avoid capital gains tax on the profit under $500k and get the ability to use your VA loan for your next primary residence. 

I suggest living for two years to avoid capital gains if you sell within two years of moving out.