The advantage you have living in SD for 15 years is knowing neighborhoods,which ones are improving, where you will like to live, and which will attract good tenants. 

Other than landscaping, my other main set of skills is in home repair and improvement. 

Can I use the amount I believe is the capital gains for the 1031 and take the basis (purchase price, plus improvements, 250K exclusion-section 121)I was told I could but I need more clarity.

Plan on living there between 1-2 yrs while making improvements, and renting out other parts of the house if possible.  2 years for tax benefits, 1 year for lender obligation before you move on to another purchase.

The two reasons why most inexperienced investors lose their shirt on deals is incorrect assumptions on improvement costs or exist values.

The tax rate for short term capital gains and ordinary income is the same.Lets work backwards.Selling price: $250,000Selling costs: $15,000Net selling price: $235,000Purchase price: $100,000Purchase closing costs: $2,000Net purchase price $102,000 (this is your "basis")Improvements $25,000New basis: $127,000Gain on sale: $108,000This is taxable at your ordinary income rates.The interest on your loan is an expense.

If in contract soon, investors can capture the peak season and make their property tweaks or improvements in the low season.

This might entail making improvements to curb appeal, kitchens, and bathrooms in order to draw in better renters and raise rents.Long-Term Appreciation: Take into account real estate in communities that may see long-term growth.

Read as much as you can about real estate investing to improve your knowledge.

I hear Philadelphia can get really cold so if they are taking showers and cooking with no ventilation then they might have mold but it is on the tenant.