Maybe, and maybe not.The starting point is to figure out your intentions in regards to this deal and whether it qualifies as an investment (with capital gains) or a flipping business (with business income taxed at ordinary rates + self-employment tax).

That will be taxed at ordinary incomeThe seller also has a tax basis on the assets.

It reduces your taxable profits by 20 percent, and the remaining profits are taxed at your ordinary rate. 

- Would interest expenses under one structure be deductible against my personal (W-2) Ordinary Income? 

So, the truth is remove the agent in mass, ok, what your doing is laying fertile ground for one like myself with commanding knowledge of it all, to just burn through the country side like a Mongolian Invader because when it's just normal ordinary people trying to do such a legal technical thing we can hide all kinds of terms all over the place. 

Is there something out of the ordinary you're concerned about?

The opportunity that subto has been giving to every individual that comes in to learn and network with one another its the most incredible thing I been honored to witness with my own eyes if you are an action taker and understands the power of giving, community and collaboration than its worth the investment you are thinking of doing if you have it in your thought to join some thing out of the ordinary the leader has shown what real collaboration and leading is I can say 1000 words on how these is the best communtiy in the planet or you can take that risk and see the ROI for your self good luck in your journey hope these answers your questions about Pace Morby the GOAT of real Estate.

So Id say thats a success.Nothing out of the ordinary happened in that time.

I am very familiar with the two and three story ordinary structures in the Chicago area and the related insurance valuation methods and software.

If there's bonus depreciation, then there are items we recognized as being non-real estate, and therefore we cannot exchange them for real estate in the 1031, so there is a possibility for depreciation recapture, and that would be at your ordinary income tax rate (25% deprecation recapture for real estate).