The way it works out, for 2025 if your taxable income plus any long-term capital gains amounts total up to less than $126,700 (assuming married filing jointly standard deduction of $30,000 plus the 0% LTCG tax bracket of $96,700) right now the capital gains tax rate is 0%.

He is married with joint income of about 148k.

You could file "married filing separately."

In Florida where I live that amount is the first $50,000 for a married couple are exempt.So to put all that into action, let's say the previous owner paid $100,000 for the property 20 years ago and lived in the property.  

In California and Florida there are two State run plans of last resort (Cal Fair and Citizens respectively) for the otherwise uninsurable; properties that private companies have already deemed too risky and are effectively subsidized by taxpayers.

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

I’m a 28 year old married man with a 3 week old son.

The best way to learn about how to really invest in real estate is to read books, listen to good podcasts, and pair that with going to in-person meetups so you can see people just like you, married with 3 kids, who are making it work for them.

All the friends I trust were out of town or married, and I was done living with strangers. 

The appraisal district shortly thereafter corrected the tax allotment “anomaly” between the two lots, but the investor never made a tax payment and eventually lost the lot to a tax foreclosure.