All of the tax is deferred and the only tax left on the note is on the interest portion of the payments.The other option would be for the client to exclude the note from the 1031 exchange. 

This will Obviously be excluded from any title policy you’d get...this is a pure gamble.  

One question is whether they want us to capitalize installation costs in addition to the cost of the item or if they will let us exclude those.

@Samuel J Claeson there is a way its just not as cut and dry, and will exclude more buyers from the program.

However, NOI sometimes excludes Capex.

Small business assets are excluded from Federal student aid FAFSA calculations.

So I looked up that section of the law and it says that the following type of person is excluded from being considered an investment advisor:http://www.leg.state.fl.us/Sta...517.021(14)(b)(7) "7. 

But I had some questions revolving around strategy and how to allocate money.I can currently save $1K/month from my job salary, and I was wondering what your opinion is on the allocation of my savings plus the property cash flow (CF) - excluding the part of the property CF that will be going into a contingency fund.

For example, if you purchase an RE at $400K, you need it to have a $500K ARV (at 80% LTV) to extract all of your investment (excluding closing costs). 

The ROI on the cash flow alone would be 30%-80%+/year if you could actually get a property at over 1.5%...Here is some basic math on how the ROI works:Ex/Deal #1) -$100k PP, $20k down/invested-Loan payment and all monthly payments excluding utilities =$500-$600/month-Gross Rent =$1250-$1750/month (@1.25-1.75%)-Net Cash Flow =$650-$1250/month =$7.8k-$15k/year on $20k Investment =40%-75% Yearly ROI in just Cash Flow