I interpret your original post as the property was listed for 150k but ARV is only 70k.

Many CPAs are interpreting that to be the whole roof as without re-roofing - you cannot make the section of roof viable for the solar system on its own.

Am I interpreting you correctly?

The fact that you get a spread between what you offered and what you sold the contract for, can be considered a "fee" depending who is interpreting the law. good luck. 

You're getting everyone's narrow interpretations, which are all over the map.

But more importantly the bright line test appears to be the "intent' of the tax payer.If your intent was primarily to resell (most interpret that as a forced appreciation/value add/low ball purchase scenario where the desired equity is present at the time of purchase) then you are treating the property as inventory and 1031 is not appropriate.If your intent was to hold to use or to generate income from, or to take advantage of longer term appreciation then you are treating it as an investment and 1031 is appropriate. 

You will get straight forward answers for the areas they can feel comfortable answer your questions.Some items are a matter of interpretation of the law and they will not answer questions related to these areas.

If I am interpreting your advice correctly, it even sounds as if you suggest establishing yourself with rental properties as opposed to rehabbing with flipping?

You can say you are taking only your original down payment but the IRS interprets that you are taking profit first. 

Some sponsors have a different interpretation of the rules.