The 1031 exchange would allow you to indefinitely defer all of the capital gains taxes and use it to purchase multiple newer properties with lower capital expenditures, in a better market. 

I’m not sure if I can sell it and do a 1031 on it to avoid taxes, or would it be better to try and rent it out as much as possible and buy the other one too and try and rent them both out.

I'll head into the zoning office tomorrow, probably better than attempting get my specific questions answered over the phone.  

I'm originally from Western PA as well (Slippery Rock) and now reside in Atlanta.Here is how I am looking at it along with the assumptions I am making:1) I think the growth prospects are better in the Atlanta market than Pittsburgh from a pure demographics standpoint.2) I estimate your return on equity at 7.2% currently3) Over the long haul appreciation is going to take you further when it comes to net worth than cashflow will4) Doubling of the roofs is doubling the expensesThings to consider:1) What is the year built of your Atlanta property vs. what you could replace it with in PGH?

Depending on the ARV, I think you are better of using your own cash or getting a partner involved to finish the rehab and then cash out refinance with a conventional or DSCR loan.

First, work on your credit—most lenders like to see a score of 660 or higher, but the better your score, the better your terms.

Quote from @Lucas Schlund: @Ty Coutts What method would you say is better for a beginner investor, using max leverage on your first deal, or using more cash upfront to put more equity into it?

Barely, but I guarantee they will be in better shape 3 years from now than a 100k property in a high crime area.

To clarify my assumption about current equity: most transactional activity in the area has been new construction and established neighborhoods of "better" quality.

My opinion is anyone that has to ask where/how to find off-market (underground) properties is better served by purchasing off the MLS.