We've learned a ton, but at a significant cost.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

These are all upfront soft costs before you break ground. $300sqft to build at least.If you have any sort of mortgage on the property you will need an attorney to handle the mountain of paperwork the bank will give you for a lien release. 10k+, also probably some nightmare terms to have to build and sell immediately and god knows what.At this point a year has passed and you have spent at least $60,000 cash, you're about to break ground on a structure that will cost you at the very least $400,000 to build, you are still 1 year away from cashing out because you have to now build a house.

Explore multifamily or out-of-state investments for higher yields.Setting up an LLC provides liability protection but has no tax benefit for you now.This post does not create a CPA-Client relationship.

It's the cash you put in that's your cost for the property. 

Hard Money will usually finance 90% of your purchase price and 100% of your repair cost up to 70 or 75% ARV (after repair value).

I am interested in utilizing space again for group meetings, workshops, and for clients who may still desire private space.  

Quote from @John Davey: Id appreciate any help, as ex. if i take out say 100k home equity loan and use 50k each as down payments/cloing costs my understanding is i cant deduct the interest?

I don't have personal experience with it, but when the app was first developed, I contacted the developer and put the app through a fairly robust test usage to see if it's something I would want to recommend to my clients (I'm a CPA).I think the app is great for its intended purpose and I do recommend it to my clients now (and have for about 18 months now). 

I've been recommending www.repstracker.com to my clients.