In order to fully defer all tax you must purchase at least as much as you sell and you must use all of the proceeds from the sale in the next purchase or purchases.If used correctly the 1031 allows you to roll the tax forward into the new property and as long as you either hold that property or do another 1031 when it is time to sell that property you will defer the tax and any additional tax indefinitely.There are also strategic ways to eliminate that tax totally.

There are "prohibited transaction" rules that may get in the way of what you want to accomplish, so be sure the look at those when you're formulating your plan.

That one year of residency will allow you to get away with paying only 3.5% down for ultimately, a rental property legally and strategically.

The reason why I asked this it's because I met a realtor who will show me lists of hud homes before they are acutioned out and was trying to formulate a good strategy to wholesale them.

Strategic thinking led you to maximize the value of this investment.  

Again, consult with a Real Estate Attorney to formulate a Texas legitimate JV Agreement...not a Boiler Plate or Template.Anish Tolia I hear you LOUD and CLEAR!...

Hello all, from Jersey City.I'm John and my family and I currently own a house that we are having renovations done to in the Jersey City (Journal Square 07306) area, which is in a very good location for potential renters since it is close to: (transportation, food places, one train ride away from Newport Mall, etc)The property has gone through appraisal and after, was appraised at a pretty good value in the $350k+ range and I am wondering what to do to get started in real estate investing.I am interested in having it rented out but also POSSIBLY selling it, and getting multiple properties with a large amount of rooms (3-4+) that I can have rented out for cash flow.If any investors are in the 07306 area or have experience with investing in Jersey City, feel free to provide some feedback and some strategic insight.

Unfortunately, there has been no new construction in the area so I'm unsure of how to formulate a good offer price since I have no comps.

Sometimes you may think you're alone in your goals and having others even interested in connecting helps formulate your plans and ideas.

Looking at the second half of the year before you invest, a strategic approach might look like this:1) Read one MF book per month.