I am still active broker in Oregon but I don't do any business per se other than my own deals...

I'm looking in Eckington, Brookland, Capitol Hill, Lincoln Park, Anacostia and other parts of SE DC.

This will be ordinary income an subject to SE tax typically. 1031 only qualifies on passive investment income -IE sale of a rental. 

Welcome Ryan, I too am in SE Michigan!

I didn't see your expected timeline (at $44/day interest) or ARV, so extra hard to estimate profits.Be sure to reduce your ARV 10% for realtors and closing costs and after-inspection concessions.Be sure to account for your silent tax partners- 1) Uncle Sam federal taxes & FICA SE taxes,  and 2) Your state dept of rev taxes, if any. 

Majority of South Philly-Newbold (19146/45), Point Breeze (19146/45), Wharton/ Dickinson Narrows (19147/48)Brewerytown (19121)True Temple - 11th to 19th, Cecil B Moore to Diamond, most investors may be stuck on Broad-18th(19121/19122) West Oak Lane Closer to Cheltenham Ave (19126)Port Richmond SE of Aramingo, SW of Allegheny Ave (19134)East Kenzo (19125)/Old Kenzo (1923)/Norris Square (19123/33)W Mt.

I may do a 1031 exchange but the capital gains rates are low right now and I can most likely make money with some of the cash and use some for some capital improvement projects as I am mainly mortgage free at this point.The income that is not subject to SE taxes might be subject to SE taxes via payroll requirement if you run this transaction in your S-corp.

That said, we don't model any market appreciation per se at all.

Our eldest SE daughter leases & deducts it using a % for business breakdown & has done so for 5 years. 

I'm a bit partial to the SE Valley suburbs of Chandler, Gilbert, QueenCreek and San Tan Valley.