and would like to do a 1031 exchange to avoid cap gains taxes. 

We both lost out to someone that was willing to give the Seller almost the price they were asking because they were doing a 1031 exchange were they had a substantial amount of cash and they liked the property location.This similar scenario has played out for me several times over the last few years because the market was so hot.

As a buyer, I’m usually willing to pay a bit more for the property in exchange for favorable terms—like a low interest rate, often between 0-3%.

Since you are an active service member the IRS will allow you to have lived in the property for two out of the previous ten years of owning it. you'd just want to verify with your accountant that you qualify for these extensions.Since you converted the property to investment, you may also take advantage of doing a 1031 exchange when you sell.

A client can also close on a new property in less than 45 days so no long closing or pre construction risk. 1031 exchanges are easy to fulfill with our model. 

If I'm understanding this correctly it mainly makes sense if you either plan on holding the property or doing a 1031 exchange in the future?

I have a 1031 exchange coming up soon that I can leverage into $900K+ for one or more properties.

It involves using Section 179 or bonus depreciation, and I would not DIY this project, as distinction between repairs and capital improvements is one of the most confusing areas of the tax law.And no, you do not need a cost segregation study to deduct these components of your rehab - if you have itemized invoices and receipts.Myth 8: for a valid 1031 exchange, I must exchange STR for another STRNo, you don't.

My father would be willing to help us out in basically any way that he could, in exchange for modest monthly payments going forward, and is content limiting his capital gains exposure with the owner financing. 

If you do exchange messages with the tenant there may also be other documentation to back this up for example a message from your tenant saying something like "Since I'm the only tenant its a little harder now, but I will have the rest of the rent on Friday".