She says she does and it has no debt.. ( I paid 130k for her house).

To defer all of your gain, you'll want to trade up in value, replace all the debt (meaning new properties have at least $350,700 of debt), and not take any cash from the exchange (this is boot which = taxable gain).As for replacement property, it just has to be real property - meaning it can be commercial, STR, land, etc!

Those areas will eventually cashflow as you pay down debt but definitely not in year 1 Thanks for the response!

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

In other words, your renters have covered a majority of your costs of ownership this year, including covering your debt, and you have to put some additional money in, which raises your cost basis.

If you have large debt with a high interest rate, I would consider paying that off before getting started investing in real estate. 

I paid him half and half went to the debt. 

Waiting until you get a deal under contract to then see if you can put together the debt and equity is a recipe for disaster.

Investment Info:

Large multi-family (5+ units) fix & flip investment in San Francisco.

Purchase price: $2,800,000

Cash invested: $560,000

The property is a three-story multi-family residential bu...

We already paid them a pretty sizeable entry fee ($30k) to cover some of their equity and debt in another project.