@Michael Overall Utilities and interest paid before a property is in service must be capitalized and added to the property’s basis.

The capital required for Denver, and limited cash flow makes it a tough market to get your next one.

We have life time losses to uncollectable rent/financing payments to prove we back up this claim.   

We don't have much capital to work with outside the equity in our current home, but should be able to come up with first/last/deposit on a rental without selling.  

Is it possible to avoid taxes on the gains if I buy another property for $564k ($900k - $336k) and make capital investments of $336k?

This would allow you to defer the capital gains tax, and instead of taking a large tax hit, you would be able to use the tax to invest in a nicer property/properties.

@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.

But, I had a vision, and I had a decent chunk of capital to start with (don't worry, that didn't last).

It would be wise to ask your CPA the capital gains exposure once this strategy is being executed.

You can access capital at 8% that way without giving away any equity.