Actually, it is possible do structure a 1031 Exchange on the sale of one or more relinquished properties and then using the proceeds through the 1031 Exchange to construct improvements on real property you already own.

I would compare the return on your rental to your stock market portfolio.

The LLC sells the subject property and buys, for example, 3 replacement properties in a 1031 exchange. 

There is no statutory prohibition against buying from a related party in a 1031 exchange. 

(Except something like 1/2 of a duplex where the rental 1/2 is worth as much as your exchange.).

@Ngozi IwunzeOne way to avoid capital gains is to turn the flip into a rental after the rehab and then do a 1031 exchange into a more expensive property. 

Exchange now at 500k over basis into income property with lease back and put option for 300k more. 

Someone out there must study those submarkets pretty heavily and can explain how housing stock has changed or not changed month over month the last few months... 

The exchange must also be for like kind and quality.

Diversification Beyond the Stock Market: Real estate provides tangible, real-world value that helps hedge against market volatility—a crucial feature when building a resilient retirement portfolio.