@Luke EzzoThe conventional approach to real estate investment is to buy slightly undervalued properties, improve them, and then hold onto them for 1-3 years before selling for a profit.

So you cannot use that property as collateral for a loan. 2) Again, the house is not your name anymore so there are no depreciation benefits.3) From my understanding (and I'm not a tax guy so double check this with someone who is) is that your taxable income would be calculated based on the capital gains over and above your initial purchase/capital improvements and recaptured depreciation (for a SFR, the property, not land, depreciates 1/27.5th each year) but the amount you lend back would not be taxable until you receive that income.

The jurisdiction I pay tax to spends the tax revenue to generate more visitors by marketing,improving and incentivizing entertainment districts, and other uses.

I am still running the show for FlipperForce and will continue to be heavily involved in working on the product vision.By joining Fund That Flip which is a leading nationwide lender for real estate deals we will have more resources to invest in our software platform and improve our product and services for our customers. 

Not sure how cold is gets at night but lots of investors here in various report improved winter bookings when they have a hot tub. 

Connect with a lender to see what you qualify for and how you can improve that situation7.

Also, as an example, if I sell it for $600,000 over purchase price but can show that I invested over $100,000 in improvements, can I add those improvements to the purchase price and to show that I made less than $500k on the sale and not be subject to capital gains?

If you have over-improved the unit for the market, it is highly unlikely that you will reap a higher rent price...the market just doesn't support it. 

Make the note payable to the intermediary and then any payments made on the note during your 180-day exchange period can be added to the 1031 escrow account and improve your tax efficiency on the exchange.

I'm just curious would you improve your purchase price if you have worked with wholesalers in your market.